Owners of successful businesses are faced with numerous challenges when looking to transfer ownership. The attorneys at The Pollock Firm LLC have experience helping businesses prepare for an orderly transition of ownership regardless of the type of enterprise that is involved.
We strongly recommend that the owner of business interests seek out expert legal advice in in order to deal with the many issues that can arise. In particular, Business Succession Planning is imperative to avoid disputes over ownership and control of the business after you are gone. At The Pollock Firm LLC, we provide advice and counsel to business owners in all aspects of business succession planning including:
- Estate Planning—A business succession plan must be coordinated with your overall estate plan to ensure that your assets will go where you wish them to go. It is equally important that the owner of a business designates appropriate people to carry out your plan. A business succession plan may also involve Planned Gifting of business interests to your heirs or trusts for their benefit.
- Tax Planning—No business owner enjoys paying high taxes if they could legally and ethically be minimized. When creating a business succession plan, we explore ways to minimize state taxes and federal taxes, including capital gains taxes, federal income taxes, state income taxes, federal estate taxes, state estate taxes, and state inheritance taxes.
- Business Formations— It is often necessary to form a new business entity when creating a Business Succession Plan. This is because we may want to have one business buy all or part of another business. Accordingly, we often help clients to form limited liability companies, general partnerships, limited partnerships, C-Corporations, and S-Corporations.
- Creation and review of shareholder agreements, operating agreements and partnership agreements. The execution of a new agreement amongst the owners is a great way to minimize conflict in the future. The outgoing owner can help create a structure that allows for the wealth generated by the business to be spread amongst many family members while preserving control.
- Drafting Buy-Sell Agreements – A well drafted Buy-Sell agreement can provide the outgoing owner with piece of mind that their business will be run smoothly and their family will be financially provided for.
- Advising you on the appropriateness of funding mechanisms for Buy-Sell Agreements – It is vital that you ensure your that there is proper liquidity to pay for the purchase or sale of any business interest. It is also essential to ensure that you have enough liquidity to pay for any business interest you may be required to buy.
- Business restructuring – Restructuring a business into voting and non-voting interests is a great way to pass on wealth, but maintain control.
- Helping to you to identify exit strategies
- Helping you obtain Key person insurance.
For more information on Business Succession Planning, please visit my blog: Kevin A. Pollock BLAWG