Is Your Business Partnership Prepared for Succession?

Posted on May 9, 2013 in Planning & Advisors

Who said partnerships were easy?  Part of the challenge is structuring your company so that it can function well in your absence — especially if that absence is a prolonged one . . . like, because of your death.  What happens to the employees?  What happens to your clients?

As Jason Knott points out in his article, “Are You Prepared for Business Succession?“, there are a number of issues to think through such as:

  • Estate taxes
  • How business is generated (if it’s a result of your contacts and you’re no longer around, what are the likely fortunes of the company?).
  • Employee and vendor loyalty

And don’t forget having a clear plan for who will own the business and in which proportions when you’re gone.

All of these issues are challenging — they’re heavy with emotion, potentially unpleasant, and not always simple to work through.  But you needn’t go it alone.  Your succession planning team — your attorney, accountant, business partners, and (if appropriate) consultants — all can help you figure it out.

 

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