There are many small business owners in the Kent area. These are important businesses for the Washington economy, creating jobs and offering valuable resources for residents. Business owners have worked hard to grow their business into a successful endeavor. Most business owners want their business to remain for several generations to come and a successful business succession plan can make all the difference when it comes to estate administration.
Owners of a business spent a lot of time planning. They plan for their current business and employee needs, expansion opportunities and property management. But, planning for a business in the future when the current owner either becomes incapacitated or dies can be equally important. A business succession plan often uses estate planning strategies and each business is unique. There are many factors that go into a business succession plan, including ownership percentage for future owners, estate taxes and liquidity.
If there is uncertainty within a business at the time of a major transition, it can be detrimental. Although a great percentage of American businesses are family owned, the chances of them surviving into the third generation are approximately 10 percent. A business should consider creating a business succession plan that works for their business needs. There are typically family members that a business will be passing to in the future and working these future business owners into the picture sooner rather than later is important. A legal professional who is skilled in estate planning can help their clients with their business succession legal needs. An attorney understands how important it is to keep the business in the family and will attempt to make sure the plan leads to these end goals.
A great majority of businesses in the United States are family owned. These businesses are important for the economy and business owners typically want their businesses to survive throughout the generations. A business succession plan can help with the uncertainty that can arise during a time of transition and make sure the business remains successful.