Running a business takes significant time, energy, and effort. That’s why it is important to have someone on your side who is just as invested in your business as you are. Hiring a Business Attorney will give you the peace of mind you need to succeed in your business. Delegating the legal aspects to the legal expert is the best investment you can make.
What is Business Planning?
Business Planning ensures your business goals are met during all phases of your business, from start-up to yearly maintenance and ending with your succession plan. If you want to take care of business even after you’re gone, whether you want to sell it or keep it in the family, you’ll need to plan for what will happen to your estate and your business. Communication with your family and business partners is the first step. The second is making sure you have the proper legal instructions and funding that coordinate with your overall estate plan.
What if I already own a business?
Business Succession & Exit Planning is an important component of business planning that should not be overlooked. Business owners should decide to leave their companies on their terms and on their schedules. The process owners use to achieve this is known as Exit Planning. In short, Exit Planning is the deliberate, adaptable, and customized process that a business owner uses so that he (or she) can leave his business on his terms and on his schedule. An exit plan can help maximize your financial return when you transfer your business while minimizing your tax liability. Even if retirement is a long way off, understanding the process now can help you run your business in a way that will make it easier to leave when you are ready. If you become disabled or die before retirement, exit planning can help ensure your business survives and your family receives its full value.
Why do I need a Buy-Sell Agreement?
The average business owner spends 10 hours per day, six days per week to get their business to the point where it can provide a measure of security for their family. When the business is owned by partners, all those hours of work can go to waste if they fail to establish a plan in the event one of them suffers an untimely disability or death. Only by planning ahead can the survivor be assured of a smooth transition. A Buy-Sell is an agreement between the owners of a business that details what happens in the event of the disability or death of one of the owners. Such agreements can also deal with the situation where one of the owners becomes disabled, retires, divorces, or wishes to sell their interest in the business. Typically, the Buy-Sell Agreement provides for the purchase of a deceased owner’s interest at the time of death for a pre-determined or calculated purchase price. This ensures the deceased’s family receives full value for the business interest on fair terms. Ideally, the purchase price will be funded with the purchase of a life insurance policy so the business can continue to run profitably, even after the loss of a key business owner.
Watch this video to learn more about Buy-Sell Agreements:
To get started on your business planning today, contact The Law Offices of Hoyt & Bryan.