Deciding to go into business for yourself is a very big step, and success takes a lot of careful and informed planning.
At the same time, once your business is on firm footing you have to ask yourself how you will be exiting the business, and this too is something that takes some intelligent planning.
You may love what you do and have no intention of retiring. Some people feel this way, and if you are one of them you will be more concerned about how you’re going to be passing along the business after you die or become incapacitated.
Perhaps a son or daughter or even a grandchild who has worked in the business would be a logical candidate to take over. If this is the case you must consider how you’re going to balance inheritances.
If you have other family members that you want to provide for and your largest asset is your business you may want to take out insurance policies to distribute among your other heirs.
Other individuals do not intend to work for the duration. They want to retire, and some will sell their businesses to finance their retirement years. If this is your intention you will want to prepare the business for sale eventually, and you may proceed differently along the way than you would if you were keeping the business in the family.
The best way to proceed with regard to small business succession planning is to sit down and discuss your vision for the future with a good estate planning lawyer. Our firm has a background assisting small business owners in the central New Jersey area, and we would be glad to provide you with a free consultation if you would like to devise a plan that leads to the fruition of your long-term goals.
We can be reached at (908) 222-8803.
The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.