Stuart, Florida Attorneys Help You Develop a Business Succession Plan
Creating a plan to protect the future of your company
You have worked hard to create a successful business. It is imperative to create a contingency plan for what will happen to that business once you retire or pass away unexpectedly. You must ensure that trusted people are willing and able to run your company in the way that you see fit. You must consider the needs of your business and the attributes that you believe your successor should have. At McCarthy, Summers, Wood, Norman, Melby & Schultz, P.A., we have been helping small business owners for more than 40 years. Kenneth A. Norman, a Business Law Attorney, can assist you in creating your customized succession plan. Trust us to help you protect the future of your company.
Steps for developing a business succession plan
A succession plan requires significant care and preparation. This is an incredibly important decision that will impact the entire future of your business. Here are the main steps in the process:
- Choose your successor. Your successor should be the person who is qualified to run the company and is already familiar with your business practices.
- Develop a formal training program. Take note of everything you do for the company, and take the time to properly train your successor.
- Set a timetable. Do not blindside your successor or your employees with this decision — give everyone adequate time to prepare and adjust to the change.
- Plan your own retirement. Make sure that you are truly ready to leave the business and that your successor is ready to take over.
- Execute the succession plan. Once you feel secure in your plan, it is time to hand over the reins of the business to your successor.
Our firm can help guide you through the process of transferring your business to new leadership.
What are your financial options?
In order to ensure that your business succeeds after you are no longer in charge, there are many different aspects to consider beyond a choosing and preparing a successor. We can also help you with:
- Selling business interests. You may want to consider selling your business interest outright in return for money or other assets.
- Buy-sell agreements. You can sign a legal contract in advance that arranges the sale of your business interest upon your retirement, disability or death.
- Grantor retained annuity trusts (GRATs) or unitrusts. With an irrevocable trust, you can transfer your assets while still maintaining an income for a set amount of time.
- Private annuities. You also have the option of selling your property in exchange for receiving regular payments, and transferring business ownership to your family or another buyer.
- Self-cancelling installment notes. In this scenario, a buyer pays for the company with regular payments to you, which are cancelled upon your death.
- Family-limited partnerships. In this type of partnership, you can transfer the business to your partner and then gift your business interests to your family over time.
Our estate planning attorneys can further explain all of your options and help you choose the one that best suits your situation.
Get high-quality legal assistance with business succession planning in Florida
To learn more about how we can help you develop a successful business succession plan, contact Kenneth A. Norman, a Business Law Attorney at McCarthy, Summers, Wood, Norman, Melby & Schultz, P.A. at 772.286.1700 or online. From our Stuart, Florida office, we represent clients throughout the Treasure Coast.