For better or for worse, no one works forever. Anyone who has created a business can tell you that stepping down and appointing a successor is a nerve-racking experience. Fortunately, an attorney can aid in the transition process and help ensure the business lives on after its officers step down with minimal turmoil.
Your lawyer will sit down with you to create a succession plan for your business. Before creating the plan, your attorney will recommend you update all of your wills and trusts and review all existing insurance policies. After these are taken care of, the attorney will likely draft Buy Sell Agreements and review the compensation procedures for new officers. Then your attorney will create the succession plan document.
Proper business succession plans will cover all foreseeable legal issues with the introduction of new management. Possibly the largest issue is taxation. A well thought out plan will maximize possible deductions and minimize overall taxable gains for both the officers and the corporation. Contract language must also be precise to avoid potential conflicts once the succession takes place. The lawyer drafting the succession plan should also be well versed in employment law and corporate law to truly appreciate all of the variables in changing business leadership.
Stone Law can help you with any of your business needs. You can contact Stone Law at 732-444-6303 or leave us a message on our website.