What Will Happen to Your Business When You Retire or Pass Away?

As a business owner, it is important to always look ahead to the future. Day-to-day concerns can sometimes get in the way of bigger picture concerns like estate planning and succession planning. However, planning for what happens to your business if you retire or pass away is a crucial responsibility that should not be overlooked. If you procrastinate succession planning and you suffer an unexpected illness or incapacitating injury, what will happen to your business? What if you experience some changes in your family that require you to retire sooner than you expected to? These are the types of questions every business owner should consider.

Business Succession Planning in Illinois

If you are a younger business owner, retirement may seem so far off that it is not even on your radar. However, succession planning is important for business owners of every age. Unfortunately, unexpected tragedies happen every day. You need a plan in place for what will happen if you can no longer manage the business yourself. Sole proprietorships terminate upon the business owner’s death. However, LLCs, corporations, and other business entities continue on even after the owner passes away. The owner’s business interests will transfer according to his or her estate plans.

Estate Planning for Business Owners

Choosing a successor is a difficult task. Some business owners choose a partner or even a family member or valued employee to act as the business’s successor. The sooner you start thinking about your business succession plans, the better position you will be in to choose an appropriate successor. It is important to choose someone who is capable of fulfilling the role and who has the same long-term vision for the business as you do.

Some business owners choose to gift the business to the successor which avoids a potentially hefty tax penalty. Others create a living trust to avoid probate and ensure that the business transfer remains confidential. You also have the option of forming a partnership and creating a buy-sell agreement. These are just a few of the many options available to Illinois business owners. To learn more, speak with an estate planning attorney who has ample experience with succession planning and other business concerns.

Call Us for Help with Your Estate Planning Needs

If you are ready to start planning for your business’s future, contact the skilled Naperville estate planning lawyers at the Gierach Law Firm. Our team can help you explore your options and choose the course of action that best meets your needs. Call our office at 630-756-1160 to set up a confidential consultation today. Our YouTube Channel also has valuable estate planning and business law information.

Sources:

Investopedia

Forbes