For the family business, succession planning is often as important as thoughts of an exit strategy. Many of our successful business clients use either LLCs or corporations for their business structures. Both offer insulation from personal liability for obligations of the business. An LLC or corporation, when combined with a family trust or living trust, becomes a valuable, and cost-effective form of succession planning to ensure your business and personal legacy.
A business structure that provides for uninterrupted continuity for the operation and life of the business requires a thoughtfully prepared corporate shareholder’ or LLC operating agreement that addresses the unexpected events that are part of personal and business life.
5.4 million new business applications were started in 2021. Most of those new businesses will be solopreneurs, or small family-owned businesses.
THREE TIPS FOR FAMILY BUSINESS SUCCESSION PLANNING
If your business is co-owned with a spouse or significant other, your business structure can also become a valuable, and cost-effective form of estate planning to ensure your business and personal legacy. Here are three tips to leverage ownership in your LLC or corporation into an estate planning vehicle that ensures the seamless operation of your family business when unexpected life events arise.