If you own a sole proprietorship or small company, you may need to begin thinking about business transition issues. In others words, you may need to ask yourself what will happen to your business if you are incapacitated or no longer around.
A Clearwater business planning attorney can explain to you that many business owners do not account for business transition until it is too late. As a result, you may default to transitioning your business to your family members or spouse without careful thought. Such transition planning can be extremely risky and dangerous.
Dangers of Transition Your Business to Your Family Members
A Clearwater business planning attorney can explain to you the many dangers of focusing on family members with your business transition plans. Some common dangers can include:
- Family Politics. You may inadvertently create family drama and strife with business transition planning among family members. For example, you may create jealousy and other family feuding based on perceived slights.
- Successor May Not Be Ready. You may want to benefit your spouse or child with your succession plans. However, your loved ones may not be in the best position to run your company.
- Decreased Profits. You may find better deals and maximize your profits by selling your business to outsiders as opposed to transitioning to your family members.
- Emotional Decision-Making. You likely built a successful business by making reasonable, calculated decisions. By transition planning with family members, you may be making key business decisions with your emotions instead.
Strategies for Business Transition Planning
A Clearwater business planning attorney can help review strategies for your business planning. Some ways an experienced attorney can help include:
- Developing Your Goals. Your attorney can help figure out your goals for the future of your business and develop a plan that can be effectively implemented.
- Selling the Business. Whether you plan to transition your business to a trusted mentor, pass to a family member, or sell to an outsider, you will need an attorney to help hammer out the details of the transaction.
- Considering Tax Implications. There may be complicated tax implications of any business transaction.
Contact a Clearwater Business Planning Attorney
If you have any questions about business planning and transition issues, contact a Clearwater business planning attorney at the Coleman Law Firm by calling 727-461-7474.
