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Why have a plan?
- Disability
- Departure (Retirement, Divorce, Bankruptcy)
- Death
Type of Entity – All Need a Plan
- Sole Proprietor
- Partnership
- Limited Liability Company
- Corporation
Who is impacted by the existence or lack of a plan?
- You
- Your Family
- Employees
- Co-Owners
What does a succession plan address?
- Operational – how will the business continue
- Taxation of transactions
- Valuation of interests
- Security to ensure terms
- Financial ability of the business to continue
- Financial well-being of your family
- Financial well-being of your employees
- Financial well-being of your co-owners
Types of Plans
- Agreements that incentivize/impact key employees
- Partnership Agreement
- Operating Agreement
- Close-Corporation Agreement
- Buy-Sell Agreement
- Cross-Purchase Agreement
Advisors
- Attorney – business succession and estate planning
- Accountant – tax and financial planning
- Insurance Agent – disability, long term care, life insurance
- Investment Advisor – Retirement Planning
- Business Advisors and Brokers
NOTE: This general summary of the law should not be used to solve individual problems since slight changes in the fact situation may require a material variance in the applicable legal advice.