Business succession planning is closely related to personal estate planning due to inheritance and tax issues, and both subjects should be discussed at the same time. Our experience in these areas allows our clients to fully prepare for both the succession of their businesses and their personal estates. Business succession can be part of personal estate succession, and certain types of Trusts can own subchapter-S corporation stock or interest in an LLC. The Trusts can transfer the ownership of the stock or interest at the moment you determine is appropriate, or the Trusts can hold the stock and pay salaries or dividends to the beneficiaries as appropriate.
Law Offices of Leo Mikityanskiy advises clients and assists with complex business succession issues, including:
- Business transition strategies;
- Corporate Shareholder Agreements and LLC Operating Agreements, defining buy-outs, rights of first refusal, and rights on death, disability or bankruptcy;
- All phases of buying and selling businesses;
- Full and partial business ownership transfers; and
- Tax planning and gift planning using the federal lifetime gift exemption.
These planning points address a very important issue of whether the control of the business is maintained by the family or not. Proper planning should include provisions for retention of the business control, if desired, or buy-sell retention with the right of a first refusal:
- Retention of control involves keeping the business interest or shares within the family. With a retention plan, a spouse, children, or other relatives will retain control of the business and its assets.
- Buy-sell retention of control offers the other shareholders or even outside bidders a stake in the business. Shareholder Agreements and LLC Operating Agreements should include the rights of first refusal for existing shareholders or members, which is the ability to purchase stock or interest in the business at the bid price before an outsider is allowed to purchase it.
An attorney with experience in business transitions and estate planning can help business owners and shareholders plan to ensure a smooth transition and continued operation of the business. At Law Offices of Leo Mikityanskiy, we discuss the succession, the future business operation, and the financial goals before we develop a detailed estate plan that includes provisions for business succession.
Good business operating agreements and succession plans will provide the remaining members of the business with a procedure to follow in case the unexpected happens. The agreement or the plan can designate an acceptable successor in interest or legal representative who will be able to guide the business through the transition, and put safeguards in place to protect the company from death or disability of shareholders, bankruptcy and losses.
With so many issues to consider, it is important that you consult an experienced business succession planning attorney who can understand all of the variables and the interests at stake and work with you and your family to protect them.
Law Offices of Leo Mikityanskiy represents clients in Brooklyn, NY and Northeast Philadelphia, PA. If you are looking for a professional estate planning lawyer who specializes in business succession planning, please contact attorney Leonid Mikityanskiy today at the Brooklyn, NY office at (718) 256-3210 or the Bucks County office at (215) 357-1400.
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