Santa Maria Business Succession Planning Attorney
Building an Estate Plan for Your California Business
We spend a great deal of time and energy ensuring that our estates will be protected once we are gone, including deciding who will receive what and how. If you run a privately held, family-owned business, you will need to make similar considerations. If you were to suddenly pass away or become incapacitated, what would happen to the business? Who would assume control, and what other consequences would result?
Our Santa Maria business succession planning lawyer at the Law Offices of R. Morgan Holland, L.C. can assist your family in preparing your enterprise for the future. We have over 30 years of legal experience assisting California businesses and can leverage our knowledge and resources to build an effective and responsive plan.
The Importance of Business Succession Planning in California
You cannot run your business forever. Sooner or later, someone will need to assume leadership and lead your venture into its next chapter. Some will hesitate to establish a clear succession plan for one reason or another, but having a clear and enforceable plan in place can confer numerous benefits to you, your business, and your family.
Advantages to proactive business succession planning in California include:
- Limiting tax liability. The last thing your company needs as they struggle to move the company forward after you are gone is an enormous tax bill. Successful business assets can be subject to exorbitant federal estate taxes once a business owner passes away. A succession plan can allow a business to minimize or even entirely avoid this tax liability and protect the company’s financial assets.
- Preserving liquidity. The business itself is often the chief asset of a business owner, meaning maintaining and augmenting its value must be a pivotal goal when planning to leave a legacy. Passing away without a succession plan can rapidly weaken a business and consequently diminish its value.
- Providing for family. Many build and maintain their businesses as a means of providing for their families. A succession plan can enable willing, able, and deserving family members to ascend to positions of leadership and assume control of the company’s future. When planning, business owners must ensure that every family member will be fairly provided for and that mechanisms are in place to support them once they are gone.
- Protecting continuity. When a business owner passes without a clear succession plan, a power struggle will often erupt to fill the hole left behind. These conflicts distract from the core operations of the business and can result in a devastating loss of talent and productivity, limiting your venture’s ability to succeed once you are gone. A clear succession plan allows the business to continue with minimal disruption.
Every business is unique and will require a carefully tailored approach when business succession planning. Implementing a successful plan in California will involve evaluating the various circumstances influencing your venture, including the players involved, the health of the company, and your individual goals.
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Successful business succession planning will answer several key questions, including:
- What is my exit plan? Depending on your circumstances, you may choose to voluntarily retire from running your business. Your plan should account for this possibility and guarantee you sufficient benefits that will meet your financial needs. It should also provide mechanisms to facilitate a smooth transfer of power.
- What will happen if I suddenly pass away or become incapacitated? Planning for incapacity or death is not especially pleasant, but doing so is important to protect you, your family, and the hundreds or thousands of jobs your business has generated. A robust plan will be prepared to activate should an unanticipated incident result in an
- Will the business’s wealth and assets be protected? Any death or transfer of wealth has the potential to trigger significant tax implications. Your plan should work to minimize tax exposure and safeguard what you have earned.
- Will succession cause unnecessary disruption? One of the top goals of any succession plan should be to minimize the potential for conflict and protect the continuity of operations.
Our Santa Maria business succession planning attorney at the Law Offices of R. Morgan Holland, L.C. can give you the guidance that you need to protect what you have worked so hard to build. We can assess your venture, listen to your concerns, and make recommendations on how best to achieve your goals.
“He vigorously fought for me and helped get me 50% custody of my children.”- Jason D.