What Happens to My Small Business If I Die?
While there are plenty of secondary questions to ask, the primary answer to this hinges on one question: Do you have a business succession plan in place?
Without a business succession plan in place, the death of an owner can create significant problems for the business owner’s successor and/or business partner and may lead to the total dissolution of the small business. These problems can be avoided with a small business succession plan. Designed to give a framework to how your business will run after you step down, small business succession plans can detail everything from who your successor will be to how your half of the business will be sold or acquired by another person.
Whether you’re planning to transfer business ownership to your adult child or looking to make the transition easier on your current business partner, a small business succession plan is critical to the longevity of your business.