Business Succession Planning
April 11, 2019
There are many Myrtle Beach area residents who own their own businesses. Many of these are family businesses that have been in the family for generations or whose owners hope they will be in the family for many years to come. Business succession planning is important for these companies to make sure there is a plan in place.
A business succession plan is important for Myrtle Beach small businesses that hope to be in business for many years to come. A succession plan is a way for the company to transfer ownership to the next group while minimizing conflicts. A plan can also minimize tax liability and offer financial support for all business partners.
It is important to start succession planning as early as possible. This helps a business owner understand all of their options when it comes to who will take over and make these decisions without being rushed. After exploring all options, business owners need to name their successors. This can be the most challenging step as there may be many options.
It is important to make sure the business will be placed into the best possible hands, so a family member may not be the best choice. A business owner will then need to set up the best legal structure to transfer their business. It may be an outright selling of the business, transferring the business with a buy-sell agreement, using private annuities or establishing a family partnership.
Small business owners in Myrtle Beach may want to speak with an attorney who specializes in estate planning regarding their business succession plans. An attorney can walk through the process with their client, help them identify successors and create a plan that will ensure the business will continue for many years to come.