If you’re a business owner, you’ve probably heard someone tell you that it’s a good idea to have a fully formed business plan in place early on rather than trying to establish one later. That’s because a business plan is designed to tell your investors, shareholders and employees what your goal is for your company and the plans you have for it down the road.
One plan that can sometimes get overlooked when first establishing a business plan though is business succession. In fact, this may be the first time many of our Cincinnati readers have considered it. But whether you’ve heard about it before or not, it’s a good idea to address it now while you still can. That’s because failing to establish a clear succession of a business can create legal problems down the road.
When considering your business succession plans, it’s a good idea to consider the type of company you have. That’s because from limited liability companies to sole proprietorships, each business type could have a different outcome if you were to pass away without establishing succession in your business plan.
Another thing to consider is any debts your business may have. That’s because lenders may want to collect on this debt after you pass away. As we hinted at above, the outcome of the collections process may change depending on the type of business you own and the circumstances surrounding the current state of your business.
If even just these two pieces seemed confusing, you wouldn’t be alone in thinking that way. The law here in Ohio may seem incredibly complex to anyone without a legal background. By involving a lawyer, you have a better chance of getting the law explained to you in a way you can understand, thereby giving you a better sense of the legal challenges you could face if you don’t establish a fully formed plan. A lawyer can also help you make these plans as well as assist your business if the worst should happen anyways.