Business Succession Planning & Incapacity

Whether you are young and in the prime of your life or you're a few years older and your business has become your focal point, it's likely that you are not considering one major scenario that can ruin your business: What if you become incapacitated? Nobody likes to think about getting sick and being unable to work on their passion. It's one of the reasons that keep people from creating their estate plan as well, it's just a topic we don't want to think about.

Just like your personal assets, if you don't have a business succession plan in place and something happens to you, your business is left at the whim of your local courts to decide how it should be run in your absence. In many cases, a court may actually need to appoint someone to formally act as the person running the business. While in the end, it may be the same person who you would have chosen, creating an estate plan avoids the delay of dealing with the court system and the legal fees that will need to be paid to get that person installed and running your business.

​There are three common issues that we need to address together. First, who will manage the finances of the business? Second, who will do the day-to-day work of the business? Third, will the business have enough money to continue without the owner?

The simple answer to this problem is to have a plan for your business. As you are getting your business started, you can consider the various scenarios of what should happen after you are no longer working in the business (retirement, incapacity, selling your interest, etc.). When it comes to a plan for your business, as Benjamin Franklin famously said, "An ounce of prevention is worth a pound of cure."

Ready to create a business succession plan? Let's set up a complimentary Legal Strategy Session to discuss the best options for you and your business: https://www.andrewmayers.com/reports/scheduling.cfm

-----
Let's Connect on Social Media:

Twitter ~ https://twitter.com/ayerslaw
Facebook ~ https://www.facebook.com/ayerslaw/
Instagram ~ https://www.instagram.com/ayerslaw/
More Links ~ https://www.andrewmayers.com/reports/social.cfm

business successionsuccession planningestate planning