As a business owner, embracing uncertainty is pretty much part of your job description. But experience has probably taught you that when you can plan ahead you should. For many Fort Worth, Texas, businesses, a succession plan is necessary. For others, it simply offers extra peace of mind that is well worth the time and investment. And no matter what type of business you own, a succession plan can help you make informed, strategic decisions when it comes to present-day hiring, financial transactions, and more. Below, learn more about the benefits you receive when using a Fort Worth business lawyer from to plan for the succession of your business.
How can a Fort Worth business lawyer help me plan for the future?
Experienced, Knowledgeable Counsel
A succession plan developed in partnership with one of our Fort Worth or Burleson business lawyers can make future leadership transitions smoother — and decrease the transition’s impact on your business’ bottom line. With counsel from a member of our team, you can rest assured that your succession plan will check all the necessary legal boxes and cover crucial areas of interest when it comes to securing the future of your business.
Protection in the Event of Death or Disability
Succession plans also offer protection in the event of a sudden passing or illness. They can provide clarity and timely handling of business transfers or sales for partners, board members, employees, and family members after your passing. Your succession plan will do away with the need for a valuation after death and ensures that the succession policy benefits are available immediately.
A Path for Success
But what many businesses don’t realize is that succession plans don’t just support the distant future of business, but your present success. An official plan helps the company to recruit and develop leaders in the present who will grow and develop into future roles outlined by the succession documentation.
What does a succession plan include?
While some businesses choose to sell or dissolve the company when the owner steps down, other companies appoint a long-term employee, friend, or family member to succeed as owner. However, succession plans can cover more than simply leadership transitions. Changes in ownership or board positions are pivotal times in the life of a business. A Fort Worth or Burleson business lawyer can help you plan for the handling of every aspect of your business.
Choosing a successor.
By clearly outlining the successor and the succession timeline, you can manage expectations and help prepare the business (and future successor) for leadership transition well in advance of stepping down.
Passing on key institutional knowledge.
Your business lawyer can help you organize and outline information on how and where your business stores customer account data, past and current sales documentation, technology information, pertinent records, and other necessary information. It should also include information on how the successor will be compensated.
Handling financial obligations.
In the event of changes in business ownership, lending institutions and banks can alter lending agreements or call in a loan. It’s imperative that clear outlines of debts and loans are provided for the successor in order for plans to be made before the handing over of the business. The more financial information that can be passed down, the better prepared the new successor is (and the better off your business will be). Succession plans should include detailed instructions on all bank and account details for the entirety of the business.
Decreasing tax burdens.
Taxes are inevitable — especially when it comes to transferring ownership in a business. Our Fort Worth legal team can help you to determine a navigable route that shields you and your business from paying unnecessary taxes and fees.