You put so much time and effort into starting your business and making it a success once it is established you are proud of what you built. You probably cannot think of doing anything else in your life. But, at some point, you may need to step away whether that be because it is time for retirement or because some life event happens like developing an illness, or death. You cannot run your business forever and so that is why it is critical to put together a succession plan early. If something unexpected happens or if you are ready to move on to engage in other undertakings, you will know that transition will go much smoother and your business is positioned to continue to thrive.
Succession planning can be a complicated task. Everything from determining who will take control to how the business will be staffed and managed to what it is worth will need to be addressed. The Los Angeles corporate formation attorney at the Leiva Law Firm understands the importance of putting a business succession plan in place and is dedicated to meeting the needs and desires of business owners throughout Southern California.
Considerations for Business Succession Planning
To avoid issues in your absence having a comprehensive succession plan in place can make a big difference. A succession plan can do all of the following:
- Eliminate potential confusion and chaos by providing guidance and direction on operations.
- Save money on legal costs and taxes.
- Make changes in operations go smoother so customers are not impacted.
- Provide guidance on hiring staff and training.
- Protect the future of your company.
As a business owner in California, you are not restricted within your succession plan but rather, you have flexibility. There are options that you can choose from when you are considering how the transfer of your business will go. You may do any of the following:
- Choose a family member to take over.
- Sell your shares to:
- A particular employee
- To another party outside of your organization
- To a co-founder or partner
- Have your company buy your shares
If you know who you want to take your place, then making this decision early can help you to groom and train the individual so when it is time to step up, they know how to take on the job. Maybe you want to sell your business, but it can take time to find the right buyer. So, starting the search in advance of when you would like to step down gives you the ability to scrutinize each candidate. Potentially, you may make the decision not to transfer your business but instead, close it down. Sometimes for some people, this makes the most sense.
Speak to a California Business Lawyer Today
There are many decisions to make when it comes to succession planning and there are also several legal issues to handle. Having an attorney helping you with the process is essential. For assistance with succession planning and all your business needs, the Los Angeles business attorney at the Leiva Law Firm can meet with you during a free consultation. Please call (818) 519-4465 today.
