Your business has grown and flourished under your care, but you can’t be there forever. How do you pass on the business to your heirs or plan for its sale so they can benefit from the equity you created? There are many ways to ensure your legacy.
- If you have a partner and neither of you want to be in business with your partner’s spouse or family, you can create a Buy/Sell agreement with specific terms for determining value and the triggering event.
- You have one heir who wants to run the business, but it is the legacy of your other heirs too. One option is a contract with that heir to buy the business, either immediately or over time, from a trust, your estate, or an LLC/Inc. You can create a family partnership, LLC/Inc., or trust that owns the business and can then determine the profit shares for the beneficiaries/owners.
- The shares or membership shares of the business can be owned by the trust, and your successor trustee can hire the proper person to run the business as you have determined.
Planning for the transfer of your business can be complicated, but if you do not make the plan, the Courts will make that decision for you. If you would like to learn more on how you can set up a succession plan, lets chat some more!