When starting a business, much planning is undertaken to set it up for success. However, it is not often that initial business planning encompasses what will happen when a business ends or changes hands. Those in Georgia who start a small business may want to consider making plans in the event of the retirement or death of an owner.
By planning early, and revising plans as the business evolves, an owner or other stakeholders will be able to help ensure the successful continuation of a company. Basic ideas such as choosing a successor, developing a training program for a successor and setting a timetable for succession at an appropriate time can ensure that a company endures. Additionally, though it may seem unrelated, it can be important for an owner to plan for his or her own retirement. This could allow the owner to be able to let go of the reigns more smoothly when the time comes.
When passing ownership and corporate responsibility, there are several mechanisms that can help smooth the transaction. For example, forming a family limited partnership can help if someone wishes to transfer business interests to other family members. Other legal options could allow an owner to continue to receive income from the company for a limited time, or for the rest of his or her life if desired.
Due to the myriad of options available, most business owners seek the counsel of an experienced attorney when determining the paths of business planning and succession. Most facing these decisions in Georgia consult a business and commercial attorney. This type of attorney will be able to discuss the various options available, and assist in finding the right fit for his or her clients’ needs.
Source: FindLaw, “Succession Planning for Small Businesses“, Accessed on Aug. 23, 2016