All companies will eventually close their doors. It’s the nature of business. The life expectancy of your average small business, however, is far shorter than that of a major, worldwide corporation. After spending years or even decades of pouring their valuable time and effort into their company, a lot of owners begin to think about retiring or just setting off on a new adventure.
When you decide that you are ready to wash your hands of being a business owner, you have a few different choices available to you. Listed below are some of the more efficient and practical means of handling the dissolution of your company.
Sell Your Company to a Friend
Throughout the years of running your company, you have probably established several friendships. Selling your company to one of these business-related friends could be a logical way to end your time with your company. Selling your company to a trusted business associate will guarantee that your company is in good hands and that your company’s mission and legacy will be well-protected.
Orchestrate an Employee Buy-Out
A more selfless way to say goodbye to your company would be to sell it to your employees. The Employees’ stock ownership plan is an excellent way to shift ownership of your company over to its employees. One advantage of handling your business this way is that you can choose to maintain power until you are certain that you want to retire. It also means that your employees will be driven to be productive and guarantee that your company stays as successful as it is with you in charge.
Shift Ownership of Your Company to Your Kids or Grandkids
One opportunity that is frequently disregarded when it comes to the dissolution of your small business is giving ownership of it over to your children. If you have told your kids, “One day, all of this will be yours,” you can make good on that promise by using this exit strategy. This type of ownership transfer will ensure the financial security of your kids and their families and enable you to enjoy your retirement without having any regrets about the way you handled passing off your company.
Liquidating a company and closing it down is pretty much almost always a poor choice, and it is a move that is rarely tactical. You will be so much better off by executing any one of the above listed practical exit plans.
For additional information regarding the right choice for your company’s dissolution, you can contact our reputable, licensed corporate attorneys. They have represented clients in both federal court and civil court and will be able to discuss your options if you are considering dissolving your California small business.
Adhering to these basic guidelines could be the difference between passing on a successful company and watching what you worked so hard to build fail the moment it is out of your control. If you anticipate selling your small business, Leiva Law Firm is able to handle a wide assortment of business litigation matters.
Schedule a free, no-obligation consultation today by contacting us at 818-519-4465 as soon as possible. Our attorneys speak both English and Spanish.