The Benefits Of One Legal Counsel For Business And Personal Needs

Business owners tend to have numerous attorneys who do work for them in different specialties. Each attorney only knows what they need to know from the client to do the job in their specialty. This can result in a lack of coordination, or worse, important items not being done properly. One common example of this is where business exit strategies, or succession plans, are being reviewed and need to be incorporated into both the corporate side of things and the business owner’s estate planning.

To do this requires special skills as the counsel needs to be both versed in business law and estate law, and if possible, have a great understanding of tax law and business ownership. They must know what the business owner wants to do with the business when they pass, or if they are alive but cannot act, or if they are exiting the business and giving it to family or selling. The attorney needs to know the family situation, including whether there are blended families involved or whether the business owner and their spouse are totally dependent on the income from the business. Knowing if there are children from an earlier marriage involved in the business, along with children who are not is important, too. There may also be other partners in the business to consider.

With all of this information, what is the best structure for the business in the event that the business owner is not able to act due to illness or death? Will the existing partners be able to carry on so the business can operate profitably? How will the family be able to be supported by the business? Has there been a success plan put in place? Will the business be sold to other partners, or family members who are involved in the business? Will shares of stock be gifted to the family members who are involved in the business? Who will be responsible to run the business? What are the tax impacts of various options to the parties involved?

All of these questions and more are just on the business side of those issues. Now, looking at the personal side of things, there are many more questions that arise. For instance, if the business owner has an adult child or children who are involved in the business, are they capable of running the business profitably? How can the business continue to support the family unit? If the business owner passes away, how do they avoid giving the family members equal shares in the business, when many of them may not be working in the business? What are the options and what are the tax impacts for each option?

Having someone as the principal counsel who knows the facts and questions on both the business and personal side can give great guidance to avoid the issues that may come into play both during the lifetime of the owner and upon their death. Having a well-developed plan that is devised with counsel who has the capabilities and full overview of the client’s situation will ensure that both the business and personal side of things are done well, and all considerations have been made appropriately.

If you add into all this that business owners tend to have more assets and more moving parts to their estate plans, it becomes essential that the legal counsel also has experience with high-net worth individuals as there are many more things to consider in these cases.

Having the right counsel who can provide a ‘one-stop-shop’ for legal needs is a secret that many business owners have been utilizing for years and it is something that all small and mid-sized business owners can take advantage of to get things done right for the best results across the board.

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Denice Gierach

Gierach Law Firm

Denice Gierach is an attorney, CPA, Northwestern University business master's graduate, and has owned several businesses from real estate to manufacturing. She is the lead attorney at Gierach Law Firm in the Chicago area. With more than 30 years of experience, she has been a respected and sought-after resource for businesses looking to grow, sell, solve problems, and succeed long term. Her insights across business areas gives a fuller lens to business issues and solutions, and helps businesses grow and succeed with less time spent on legal issues and other time-consuming problems.

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