Business Succession: For What Comes After
Creating a successful business is a great accomplishment. For many, it is their “life work,” but one question that always lurks in your mind is, “What happens to my business if something happens to me?” James Law Firm, P.L.L.C., can help resolve that question and provide the peace of mind you want.
Business Succession Planning Should Begin When You Start Your Business
When you start a new business, one of the last things that may come to mind would be planning for your succession.
Yet, that is the best time to consider such issues while everyone is excited about the new venture and no money has been made. Our attorney can help you think through possible scenarios and ways in which to protect you, your family, and your business.
If you have partners in your business, having a clearly outlined process for selling a portion of the business is essential. If a partner dies or is divorced, you need to protect the business from being hamstrung by the transfer of ownership to people without knowledge of the business and the lack of continuity of ownership and management.
Without such tools as buy-sell agreements, you could wind up with a divorced spouse as your business partner or a guardian for a minor child, or an 18-year old child. The goal of a buy-sell agreement is to keep the ownership of the company with those who are active in it and to provide the parting owner his portion of the value he helped create.
Keeping Your Family Business In The Family
Similarly, you need to protect the business from the potential divorce of one of your children, or from children who are inactive in the business, or worse, a wayward child, sibling, or heir. While you cannot choose your children’s marriage partners or their actions, you can design your management and ownership structures to prevent a property settlement or a death from allowing them to “join” your business or cause disruption via the owning and voting of stock and membership interest.
What Is The Long-Term Goal Of Your Business?
If your children or other family members are part of your business, our attorney can help you create an ownership and management structure that will allow the transfer of the business in an orderly fashion and with a minimum of negative tax consequences.
Contact Us For Advice On Your Business Succession Planning In Texas
Planning for a successor in your business is inherently complex, but we can help. Our lawyer can advise you during your business formation or at any point in the life of your business. Contact our office in The Woodlands at 832-764-7885 or use our online form.