Business Succession Planning
If you are like many of our business clients, your business may be your most valuable asset and the one that means the most to you. Leaving its fate to chance may jeopardize the hard work you have put into it and may leave your family and your property with little protection after you are no longer able to manage daily operations.
At the Law Office of Sharon C. Stodghill, lawyer Sharon C. Stodghill is a Certified Public Accountant and lawyer John T. Elliott has a Certified Financial Planner™ certification, with a background as a construction manager for a family-owned business. Both are familiar with the concerns and needs of Texas business owners. Just as we are able to advise you on business formation at the outset of your business venture, we are here for you when it is time to plan for the future of your business after you are no longer there.
Protecting Your Life’s Work and Your Family
At the Law Office of Sharon C. Stodghill, our Houston estate attorneys know how to take into consideration all of your planning needs.
Business succession planning can involve many aspects, including:
- Buy-sell agreements: These are contracts that specify that interest in a business will transfer upon a certain event, typically the retirement, incapacity or death of the current owner. It can be structured in many ways, depending on who is going to buy the business. The value of the business must be determined as part of negotiating the agreement.
- Incorporation or other business reorganization: This may give the business more structure and stability.
- Estate tax planning: It is not unusual for beneficiaries to be forced to sell a business to pay estate taxes if you have not made adequate provisions.
- Evaluation of possible successors: You need to find a competent successor who will guide your business through the change of ownership and reassure employees and shareholders.
- Consideration of life changes for your successors: You must also take into account the possibility of future incapacity, death or divorce of your successors and consider the possible effects on your business.
- Consideration of other stakeholders: It’s important to think of the needs of your employees, co-workers, shareholders and other stakeholders in your business entity.
- Retirement plans: A pension may be part of your succession plan.