As an entrepreneur, you’re writing your legacy every day. Working hard day in and day out is an immense source of pride for you, as you continually strive to make sure heirs have it better than you did. Without developing effective succession and continuity plans for your business, though, you’re in danger of having your heirs miss out on your hard-earned success.
One of the most important components of developing your business succession and continuity plans is hiring the right experts. At minimum, you need a qualified accountant, financial advisor, and attorney. In this blog, we will clarify the role of a business attorney in succession and continuity planning.
Analyzing the Corporate Structure
When you started your business, you might have hired an attorney to assist with incorporation. A good business attorney will help entrepreneurs file the correct documents and set up an advantageous legal structure for the business. A business succession attorney fulfills similar obligations.
When entrepreneurs are developing a business succession plan, attorneys will scrutinize the company’s current legal structure and identify if any changes are needed in order to pull off the succession and continuity plans. In many cases, CEOs and corporation owners who want to pass down the business to family members need to change the company’s structure. The next generation of ownership might not want the level of involvement required from a c-suite executive.
Identifying Current and Potential Liabilities
Attorneys also work to uncover vulnerabilities contained in the company’s underlying documents. One major thing that business attorneys search for are guarantees made in any internal or third-party contract. If the business were to default on any of these guarantees after the original owner moves on, the new owner might be personally liable for any losses. Ultimately, an attorney can ensure the business will stay in compliance with all applicable contracts and agreements.
Taking Care of Estate Planning
Business succession plans and owners’ individual estate plans are intertwined. An effective business attorney will also have a keen understanding of the state’s intestacy laws, which dictate how assets of a decedent’s estate will be distributed in the absence of an estate plan. Also, a business succession planning lawyer can advise on matters that intersect with the owner’s Wills, trusts, and other estate planning documents or refer attorneys who can.
Overwhelmed Yet?
If so, we completely understand. However, the attorneys at Bryant Taylor Law can make things as simple as possible by marshaling the financial experts ourselves. We know trustworthy accountants, financial advisors, and other professionals who can help you develop an effective business succession plan. Get in touch with our team today to schedule your business strategy session soon.
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