Building or growing a business is one of the most rewarding ways to achieve the American Dream. When you are a business owner, you are truly in control of your own destiny. Your company can change your life, your family’s lives, and even the world. With the right planning, it can be a lasting testimony to all you have accomplished and it can continue to provide for your loved ones and for the public for generations to come.
Nehoray and Drake, LLP can help with the planning. Our legal team offers assistance to startups, and companies at all life-cycle phases. We help you to make business decisions as your company grows and we also help to make sure you are able to seamlessly hand off your company to the next generation of leaders when you are ready to leave it. Give us a call to speak with an experienced attorney who can help with business and successful planning. In addition to personalized advice, you can also get answers to questions you have including:
- What is involved in business planning?
- What is involved in succession planning for your business?
- How can a business and succession planning lawyer help?
What is Involved in Business Planning?
Business planning should start from the time when you first formulate the idea to sell a product or a service. Your planning process should include:
- Selecting the right kind of business entity. You could operate as a sole proprietorship, which is the simplest option with the most personal risk. You could form a partnership to work with others, but you are still taking on a substantial risk. An LLC, S-corp and C-corp are all more complicated to create, but can protect your personal assets as long as you follow formalities. You must think about the complexities of creating and maintaining the business entity as well as the tax implications and rules for liability.
- Creating a business plan. Your plan should be detailed enough to help you establish a path towards profitability. The plan can help guide your business choices, and can also be useful in convincing banks to loan you money or investors to gamble on your company.
- Creating appropriate contractual agreements. There are a huge number of contracts that often must be created when starting or growing a business. For example, you may need employment agreements; non-compete and non-disclosure agreements; partnership or shareholder agreements; a buy/sell agreement; leases; supplier agreements; and much more.
- Risk mitigation. You need to identify possible sources of risk that could impact business operations and you need to find ways to work within the law to limit risks. For example, you must understand the potential for a lawsuit by a disgruntled employee if discrimination occurs and should create an anti-discrimination policy aimed at preventing litigation.
These are just a few of the key steps associated with business planning. An experienced attorney can offer you guidance on what type of plans you should make at every phase of your company’s development.
What is Involved in Succession Planning for Your Business?
One of the most important parts of business planning is the process of deciding what will happen to the company once you are no longer willing or able to be a part of it. You need to think about what could occur if you become disabled; get divorced; or simply want to retire. In these situations, you do not want your company to fall into the wrong hands so its future is jeopardized.
You also need to consider the implications of your death, which can result in a business being transferred to new owners you have selected. Your company could be considered a part of your taxable estate if you have not planned to ensure this does not happen. Only larger estates are taxed, and the consequences of being hit with estate tax can be grave. Estate tax is an especially big issue for owners of farms and companies where money is tied up in the business and there simply is not money to pay all the outstanding estate tax due. Your business could have to be sold, or loans could become necessary to pay the taxes due. With the right planning, you can try to keep your company from triggering estate tax.
How can a Business and Succession Planning Lawyer Help?
Nehoray and Drake, LLP can provide comprehensive assistance with all aspects of business planning. We bring legal perspective and business acumen to the table as we help your company to get off the ground, grow, and excel in a competitive marketplace. Give us a call to find out more.