Having an estate plan is important when you own a business. It is better to plan ahead and have one in place rather than leave it to chance. You would not leave your business with no one to run it while you took a vacation, so you do not want to leave it open when you pass away or become unable to manage it yourself.
Owner Depended Businesses | Attorney in Raleigh NC
An owner dependent business is one run solely by the owner. The owner generally has no plan to continue its operation after his or her retirement or death. In this situation, it is likely that your business and your personal wealth, and even the assets of your immediate family, are tied together. In order to ensure that your family is taken care of in the manner you choose, you will need to create a plan outlining what will happen to the business and to your personal assets.
In an owner dependent business model, the basic idea is that the company will not continue to operate after the owner retires or passes away. Many service industries operate this way. Your doctor, dentist, lawyer, or accountant may not have anyone to run the business after he or she is gone, so the plan is to close the business upon retirement or death.
Other types of businesses that may work under this assumption are restaurants owned by the chef, general contractors, or small automotive shops. The general idea is that once the proprietor is no longer around, the service cannot be provided. But, that is not always the case. Sometimes people who establish a name in their industry may choose to bring someone in to take over the business.
Ready to learn more about estate planning for owner dependent businesses? Stay tuned for the next installment in this series on estate planning for owner dependent businesses, where we will cover issues such as liability, taxes, life insurance and how to take care of your employees.
Eldreth Law Firm | Attorney in Raleigh NC
Our attorney in Raleigh NC is here to help you with all your small business needs. Whether you're starting a new venture or making changes to an existing company, we can help with legal situations. Contact us to make an appointment!
As always, feel free to contact us with any questions or concerns you may have about estate planning. Also contact our attorney in Raleigh NC to schedule a consultation if you have yet to start estate planning. It's never too early to make plans for your wishes upon death. In addition, our lawyer is here to help you with all your legal matters, whether it be estate planning, divorce, child custody, trademarking, copyrighting, or DWI issues.
Interested in learning more? Visit other blogs in this series:
- Estate Planning Tips for Owner Dependent Businesses, Part 1
- Estate Planning Tips for Owner Dependent Businesses, Part 2
- Estate Planning Tips for Owner Dependent Businesses, Part 3
- Estate Planning Tips for Owner Dependent Businesses, Part 4
- Estate Planning Tips for Owner Dependent Businesses, Part 5
- Estate Planning Tips for Owner Dependent Businesses, Part 6