Last week, this blog discussed the estate planning issues that small business owners in Maryland face. Often, small business owners spend so much time concentrating on the everyday activities it takes to successfully run a family-owned business that they may forget to plan for the future of the business as well.
Just like one can create a personal estate plan, one can also create an estate plan for his or her small business. A detailed small business succession plan can address how the business will be transferred after the business owner's death. This includes naming someone to step into the shoes of the business owner after the business owner passes away. If the business owner wishes to have the business sold, instead of passing it on to his or her heirs, a business succession plan can address that as well.
Different types of documents may make up a business succession plan. For example, placing the business assets in a trust may be one means to avoid probate. Moreover, a power of attorney may be of use, since it will name the person who is to run the business, if the business owner becomes incapacitated. A business succession plan can also address tax issues and the financial planning that comes with passing down a business.
When it comes to creating a business succession plan, it may help to have an attorney involved, to make sure every nuance is covered. Attorney Angela Hansen has served clients in Rockville with their business succession needs. She understands how estate planning, family law and business law come into play when creating a business succession plan. Reviewing her business succession webpage may give small business owners in Maryland an idea of how they can begin the process of creating business succession plan.