A Checklist For Business Succession Planning
As a business owner, it is critical that you have a business succession plan. A succession plan will allow for a smooth and seamless transition should you ever decide to leave the business. Without a business succession plan, there will not be any guidance if you have an emergency, decide to retire, or pass away. Below, our St. Petersburg business succession lawyer outlines a checklist you can follow to make planning easier.
Have Conversations About the Future
You will need to speak to many people about the future of your company. You should speak with employees, co-owners, and your family members in regards to who will take over for you when the time is right. This will give you the opportunity to determine who is interested in stepping in, and who has the necessary skills to operate your business.
Make a Decision About the Future Owner
Once you have spoken to the most important people related to your business, you need to make a decision about who will eventually take over. You then need to speak to the person you chose, confirm their commitment, and make sure they know what is expected of them.
Create a Written Plan
When actually creating your written business succession plan, it is always better to over-plan than under-plan. You should include all scenarios including your possible retirement, death, illness, emergency, and vacation or sabbatical time. You should also include within the plan any training or resources the new owner should have. These may include:
- Training and education
- Financial resources
- Access to systems
Also include marketing requirements and logistical issues.
Purchase a Life Insurance Policy
It is critical to make sure you purchase a life insurance policy to ensure your family is taken care of if you pass away. For example, if you pass away before officially leaving the company, the death benefits on your life insurance policy will be used to buy out your share of the company, which will allow it to be distributed among your business partners.
Create a Revocable Living Trust
A revocable living trust can hold ownership of many different types of assets, including an interest you have in a business. By creating a trust, you can allow family members to avoid the probate process, which can protect the assets within the trust.
Create an Estate Plan
One of the most important aspects of business succession planning is to create a personal estate plan. You should make sure you have a will, a trust, and a power of attorney. Creating a personal estate plan will make sure that the distribution of the business or its profits are meticulously planned out.
Contact a Business Succession Lawyer in St. Petersburg
Creating a business succession plan is not easy and there are many different elements to consider. At Legacy Protection Lawyers, LLP, our St. Petersburg business succession lawyer can make sure your plan includes everything you need to make sure any future transition is as smooth as possible. Call us now at 727-471-5868 or contact us online to schedule a consultation and to learn more about how we can help.