Ensuring that you have a proper business succession plan in place in case of incapacity or death is extremely important. Without a business succession plan, the leadership of your company may become fractured, there may be a forced sale, or your family may lose out on a controlling share.
A business succession plan takes effect as soon as you are unable to run your company. Because many of these instances occur without notice, it is essential to be prepared.
The role of a Stuart business planning lawyer is to make sure that you are prepared. An attorney can work with you to explain the purpose of a business succession plan and to create documents that clearly state your intentions in case you are no longer able to run your company.
An unexpected death or incapacitating injury can leave a person’s entire life in chaos. While many people focus on the effect that this has on one’s personal life and assets, it is just as important to understand the impact that this may have on your business. A sudden tragedy has the potential to turn into catastrophe if shareholders band together to fight for control or if a sole proprietor of a business dies without a clear successor in mind.
The overall goal of a business succession plan is to help a person retain control over his or her business. The role that a Stuart business planning lawyer plays in this goal is to identify an owner’s wishes and to assist in implementing an appropriate strategy. Common clauses in business succession plans include:
There is no specific form that a business succession plan must take. However, it is essential that a plan clearly states the owner’s intent as well as provides specific instructions.
It is also vital to remember that people often make these plans in tandem with wills. A lack of a will means that estate assets, including an ownership stake in a business, may pass to a spouse or children under Fla. Stat. §732.102 with little regard to an owner’s wishes that may be contrary. A Stuart business planning lawyer can draft documents that are legally binding to ensure that an owner’s wishes are upheld.
Forming a detailed business succession plan is essential to properly running a company. At some point, all owners will need to consider the future at the time of retirement. For others, a sudden death or infirmity may leave them unable to retain direct control.
The role of a Stuart business planning lawyer is to help people answer vital questions about the future of their company. For example, does an owner have a specific leadership structure in mind for when they retire? Does the owner wish for the company to wind down? Does the owner wish for the company to merge with a competitor at a specific date or under certain circumstances? A Stuart business planning attorney can help identify a person’s goals. Once the goals are clearly established, the next step for an attorney is to help the business owner in creating legally-binding documents that plan for the future of the company.
If you wish a company to pass to a child upon your retirement, for the company to sell its intellectual property for a profit, or even to simply sell its assets, it is important to have these instructions in writing. A well-crafted business succession plan can make these goals a reality.
The role of a Stuart business planning attorney is to form these documents in a way that reflects your goals. Contact a Stuart business planning attorney today to see how he or she can help to secure the future of your company.