Select Page
Cobb County Business Owners: 5 Benefits that Estate Planning Can Provide You

Cobb County Business Owners: 5 Benefits that Estate Planning Can Provide You

Creating and building a successful business in Cobb County is incredibly difficult and maintaining that success is just as challenging. You hire accountants and lawyers to make sure you are protected from those who seek to take away what you have worked so hard to achieve, but are you protected from those that will seek to capitalize on your death or inability to maintain your business? Are you protected from the government that will try to take their share of your business through the estate tax? Are you protected from family members, ex-spouses or co-owners that will try to take their piece as well? If you are not, the business that you started from the ground up could collapse if and when something happens to you.

Here are just a few protections that simple estate planning in Marietta can provide for business owners.

  1. You can easily deal with a future transition to co-owners

If your business has more than one owner, an estate plan will allow you to specify your wishes to sell your portion to the co-owners rather than to burden your heirs who may not want a role in operating the business. With a buy-sell agreement your business partners would agree to buy out your share of the business upon death. If your heirs are not in a position to become responsible business owners, this may be your best option so that your business is not impacted by your death.

  1. It guarantees that your business will survive without you

Estate planning can ensure that the brand you have worked so hard to create will survive long after your death. Some of the biggest companies in America started off as family businesses, but they failed to survive the transition to the second or third generation because of poor planning on the part of the original business owner.

  1. It minimizes your tax expenses

By creating trusts, corporate entities and other legal planning, you can pass along your business assets safety to your heirs while minimizing the amount of taxes that will be owed after your passing. Without such advanced planning, your business may be subject to unnecessary taxes that could force the premature sale or liquidation of company assets in the event of your incapacity or death.

  1. You can create a succession plan for your business

As a successful business owner you know what it takes to run your operations day in and day out. You have also witnessed many businesses around you fail because the transition to a next generation family member or new owner was not the savviest or most capable choice. With a proper succession plan, however, you can be assured that your business is in the right hands by legally selecting whom you want to be at the helm of your operations when you are unable to run your company or simply ready to retire.

  1. You can plan for the future

With an estate plan in place, you can plan for the future with the assurance that your business will be successful long after you are gone. You can set long-term plans and goals, and know these goals will be achieved and your business will continue to thrive.

Estate planning in Marietta allows forward-thinking entrepreneurs to ensure that their business will be protected and will continue to prosper long after they are gone. Avoid the pitfalls that many businesses succumb to when their owner is no longer able to operate the business. Contact our Marietta Georgia business lawyers and estate lawyers today at 770-425-6060 to schedule a no-charge Georgia Family Treasures Planning Session (valued at $600).

Estate Planning for Your Small Business in Marietta Georgia

Marietta GA business lawyer

 

When it’s time to start your estate planning process (that time is right now, by the way), entrepreneurs need to remember to take their small businesses into consideration.  Whether you own the entire business outright and work for yourself or you simply own a portion of the entity, you will need to leave instructions for your family to follow.

By working with a Marietta GA business lawyer and/or estate planning attorney in advance, you can save your family, business partners, and even your customers from a lot of hassle down the road.  What happens to the business may depend on the form of ownership you have.

Sole Proprietorship:  Generally speaking, if a sole proprietor dies, the business can come to a rather abrupt end.  If there is someone you trust who is interested in taking it over when you are no longer able to run it yourself, it would be a good idea to stipulate that the assets of the business are inherited (or possibly purchased) by that individual.

Partnership:  It’s likely that your partnership agreement has already laid out plans for what will happen when you or one of the other partners passes away.  If not, then it makes sense to get together with the other partners to come up with a workable plan.  It’s usually not too difficult for this type of business to continue after the death of one partner, although the surviving partners may have to buy out your interest with the money most likely going to your heirs.

Limited Liability Company:  Unless you have stipulated otherwise in the operating agreement, an LLC will typically dissolve once one of the members dies.

Corporation:  When one owner of a corporation passes away, it doesn’t usually have major legal implications for the corporation.  Shares which the member held will usually be transferred to his or her heirs.  They may also be purchased by the corporation.  It’s not unusual for this topic to be addressed within a shareholder’s agreement.

Professionals:  If you are a lawyer, doctor, dentist, pharmacist, or other licensed professional, planning for your business upon your death or incapacity is especially important.  If a license is required for you to practice, only another licensed individual may wrap up or continue your practice.  Including a “Practice Administrator” as part of your planning will enable your loved ones to easily take care of your business; without one they may be stuck with a stranger running your affairs.

Any good business planning lawyer in Marietta will advise you on ways to help the business transition should you become incapacitated or deceased.  A common approach is to set up a succession plan.  There are many aspects to a succession plan, but some of the most important pieces include designating someone who will take over in your absence as well as training that person to be ready when the time comes.

Succession plans can seem a bit daunting, especially for the sole proprietor who hasn’t put much thought at all into if or how the business would survive without them.  Exploring these topics with a business planning or estate planning lawyer in Marietta will get you moving in the right direction, whatever your small business’ needs are.

Pin It on Pinterest