Many people think of estate planning as a necessity only for a person or a family. But what if I told you that businesses are people too. Obviously not in the strict sense of the word, but in the eyes of the law, certain business types are viewed as separate legal entities with lifespans of their own. They can be sued in their own capacity separate from any of the business members. They can act and be served court documents on their own behalf, just like a person.
A business succession plan operates much the same way as and tackles many of the same issues as a personal estate plan. For instance, a Buy-Sell agreement could be compared to a Will in the sense that it directs, at the time of your death, that you wish to sell and another individual wishes to purchase that business and all of its assets and debts.
For simple business structures, those with few or solitary managing members, the buy-sell agreement is the perfect way to pass on the business from one generation to the next. However, what if that is not your desire, to pass on the business. Maybe you just want the business wound-up, assets sold and the legal entity dissolved. Are you sure all this will be accomplished they way you want it to? Do those legalzoom papers cover any of this? Or are you leaving it all to chance with your estate possibly taking a huge blow financially.
Give me a call at 720-504-7709 with any questions you have. My consultations are always free.