Devising Your Business Exit Strategy
As the owner of a your own business, your career is probably one of the most important aspects of your life. It's likely the first thing you think about when you wake up and the last thing you think about before you fall asleep. It's your job, your livelihood, and the way you support your family. While you probably plan to pursue it for many years, you will eventually wish to retire. What will happen to your business when that times comes? Our business attorneys in Camden County MO can help you devise the proper strategy.
If you have an adult child who has shown an interest in your company or worked with you for several years, you may wish to leave your company him or her in estate plan documents. This is a popular option for many business owners, but it comes with a great deal of responsibility and a necessity for forward thinking. The sooner you can start preparing to leave your company to an heir, the better. If you do not approach the situation correctly, your heir may end up having to pay gift tax or estate tax on the company. Your business attorney at the Lake of the Ozarks can help you take steps now to make the process easier (and more affordable) for your successor.
The Importance Of A Business Exit Strategy
By the time you retire, your business will hopefully have evolved into a thriving entity with many customers. What happens to these customers when you are ready to retire? Just as entrepreneurs must decide how to incorporate their company and what type of accounting system to use, they must also decide what should happen to their company when they decide to retire.
Examples Of Business Exit Strategies
There are several different ways you can remove yourself from your business when you wish to retire. Here are a few of today's most common options.
Leaving Your Business To An Heir
If you have an adult child who has shown an interest in your company or worked with you for several years, you may wish to leave your company him or her in estate plan documents. This is a popular option for many business owners, but it comes with a great deal of responsibility and a necessity for forward thinking. The sooner you can start preparing to leave your company to an heir, the better. If you do not approach the situation correctly, your heir may end up having to pay gift tax or estate tax on the company. Your business attorney at the Lake of the Ozarks can help you take steps now to make the process easier (and more affordable) for your successor.
Selling Your Company
If you do not have anyone in your family or your company that desires to take over your business, you may be able to sell it to third party or current employee. This often requires a great deal of paperwork as you determine the terms of the sale. It will probably be necessary to provide a detailed description of your company's assets, debts, losses, profits, inventory, and cash flow. Your legal counsel can help you ensure that all of these records are in good condition and resolve any potential issues ahead of time.
Dissolving Your Company
If you do not have anyone to leave your business to and do not wish to sell it, you may need to dissolve your company. The way you will need to go about this will vary depending on how your company was formed (limited liability company, sole proprietorship, corporation, etc). There are many issues that need to be addressed when dissolving a business, such as finances, customers, suppliers, and taxes. Your business lawyer in Camden County MO will be an invaluable asset as you begin approaching this process.
Let Us Be Your Business Law Resource!
No matter which route you choose, consulting with an experienced attorney will be beneficial. Even if your retirement is decades away, beginning the conversation now can make things much less complicated (and expensive) in the long run. Visit our website to learn more about how we can serve as your business law resource at the Lake of the Ozarks.
The choice of a lawyer is an important decision and should not be based solely on advertising. When you need a knowledgeable attorney, we invite you to contact us to set up a consultation. Evening and weekend appointments are available. We have access to interpreters.
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Law Offices of Phillips, McElyea, Carpenter, & Welch, P.C.
The choice of a lawyer is an important decision and should not be based solely on advertising. When you need a knowledgeable attorney, we invite you to contact us to set up a consultation. Evening and weekend appointments are available. We have access to interpreters.
We accept Visa, MasterCard, and Discover.
85 Court Circle N.W., P.O. Box 559
Camdenton, MO 65020 GET A MAP
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