How Can You Plan for the Future of Your Business?
- Posted on: Aug 17 2020
While the coronavirus pandemic has shattered much of a thriving U.S. economy leaving many businesses to struggle, small business owners especially continue to feel its full impact. Whereas they were once concerned with growth year over year, they now find themselves worried about staying afloat day-to-day.
Although the future remains quite uncertain, many small business owners have yet to proactively plan for the future of their businesses. For those who fall into that category, it’s as good a time as ever to take such steps.
Without a proper estate plan and a succession plan in place, small businesses will die with their owners, creating an extreme loss for loved ones. Here’s how you can plan for the future of your business.
Establish a Will
If you don’t have any other legal estate-planning document (which you should), you should at the very least create a will. Wills allow you to designate to whom you want your assets to go after you pass. If you fail to create a will, when you pass away, your business assets will go to those individuals designated by the state and not necessarily to those you desire.
Establish a Trust
But while a will is arguably the most important legal estate-planning tool, a trust can be an exceedingly helpful and important estate-planning tool for business owners.
Establishing a trust is important because most estates that exceed $150,000 in assets must go through the probate process, which establishes the validity of a will and subsequently distributes all assets as described. Since most business owners have assets exceeding $150,000 it’s important that they plan for this process, which can be quite lengthy and expensive.
However, assets that are placed in a trust are not subject to the probate process. By including the business as an asset within a trust, it is able to pass to your named beneficiaries when you pass away. Additionally, there will be more assets available to share without the costs associated with probate.
Establish a Succession Plan for Your Business
As a business owner, you should also ask yourself what you wish to happen to the business when you die. This is where a business succession plan comes in handy. Whether you want to leave your business to a family member or direct the sale of the business with the proceeds to go to your loved ones, it’s important that you dictate this.
The Law Offices of Brian L. Fox, APLC Help Business Owners to Plan for the Future of their Businesses
If you are a business owner now is a great time to plan for the future of your business by consulting with a knowledgeable and experienced Virginia Business Law and Estate Planning Attorney.
At the Law Offices of Brian L. Fox, APLC, we know how important it is to protect what – and whom – you care about. We will help you to establish a plan for the future of your business that meets your needs and keeps you and your loved ones protected. To learn more or to schedule a free consultation, contact us today!