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Business Succession Planning

Krugliak, Wilkins, Griffiths & Dougherty Co., L.P.A.

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 insure 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.

 
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