Business Succession Planning
As Ben Franklin used to say, “An ounce of prevention is worth a pound of cure.” Nowhere is that more applicable than business planning.
In our legal practice, most disputes could have been resolved by proper planning. The benefits of preparation result in significant savings in time and money for both business owners and business successors. Whether you’re selling your business, transferring its ownership, seeking retirement, or navigating bankruptcy, we can offer guidance you can trust from well-versed business-minded attorneys. We will help you with your business structure, assets, and tax obligations.
The prospect of starting a new business is exciting, but it can quickly become overwhelming due to all of the decisions that need to be made. At each step in the process, careful consideration needs to be given to your priorities and reaching the goals you have set for your business. A business plan assists you in determining the potential needs of the company. Furthermore, it helps you anticipate problems that may arise as it goes forward.
Law & Stein Provides Five Major Steps in Business Succession Planning
- Creating a buy-sell agreement: A buy-sell agreement is a legally binding contract outlining how a business’s ownership will be transferred. A buy-sell agreement is an important legal tool for business owners. It helps ensure a smooth ownership transition and protects all stakeholders’ interests. The agreement typically specifies the terms of the sale or transfer of ownership, including the purchase price, payment terms, and other details. There are various buy-sell agreements. A cross-purchase agreement is an agreement where an owner purchases the interest of another owner when they depart. Entity-purchase agreements involves the business entity agreeing to buy the interest of a departing owner. Lastly, a wait-and-see agreement is when the parties will agree to decide the suitable method of ownership transfer in the future.
- Training successors: We help you establish a clear process for identifying and selecting new leaders. Moreover, we help you devise a plan for providing training and mentoring for these individuals.
- Tax planning: Tax planning is an essential component of creating any sound business plan. Both federal and state tax issues need to be considered when establishing a new business. Our attorneys are well-versed in the various complexities of both federal and state tax laws. They can assist you with structuring your business to help maximize both your financial and operational success. Furthermore, we work hard to ensure that the transfer of ownership is structured in a way that minimizes tax liability.
- Estate planning: Estate planning includes the proper planning of the next ownership of a business in the event of an owner’s death. We help business owners establish trusts and create a will to ensure their business will be succeeded according to their wishes.
- Operational planning: We develop a plan to maintain business continuity. A well-formed business succession plan minimizes disruption during this transition period.
Law & Stein Is Your Business Succession Attorney in Irvine CA
Our team of skilled and experienced business attorneys at Law & Stein, LLP can act as guides for you as you proceed through the steps of planning your business venture. Together with your financial advisor, we will advise on maximizing your opportunities for growth while minimizing your risks. Contact us today.
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Starting on January 1, 2024, the Corporate Transparency Act (CTA) will require certain business entities to file a report detailing the ownership of their entity. Lawmakers designed this new law to combat money laundering, tax fraud, and other illegal acts. For this reason, if you have an entity as part of your existing estate plan,…