Making Plans For The Future Of Your Business
If you have a business and are thinking about retirement or moving on to other challenges, you need to make arrangements for the succession of your company. A business lawyer will be able to explain all of your options and help you prepare for the transfer of your business into new hands.
You may sell your business interest outright to a family member or someone else for the full market value (FMV) of the company and receive cash or assets you can use to fund your retirement. Another option is negotiating a buy-sell agreement, which names a party who will purchase your business interest after a certain event, such as your retirement. Your attorney can prepare this kind of document for you.
When it comes to business succession, you want to know your company will be protected. Patricia M. Davis, Attorney at Law, has been representing legal clients for more than 35 years. I am licensed to practice business law in both Texas and Oklahoma. As a former bankruptcy counsel for the Federal Deposit Insurance Corporation (FDIC), I can put my knowledge of business and finance to use for you in securing the succession of your company in a smooth and predictable manner.
Explore Your Options For Business Succession
Some clients opt to organize or reorganize as a family limited partnership when they know the business will stay in family hands. I can help you create the entity and the partnership agreement, including a provision for the founder’s share(s) to pass to the next generation upon death or at some fixed point in time.
Business succession often involves some type of structured buyout. You may also be considering a private annuity, which transfers the complete ownership of your business to a buyer who makes an unsecured promise to pay you periodically until the end of your life. If you are married or have children, you might want a joint and survivor annuity which would allow for payments to be made to you and your surviving spouse or other designated individual.
If you choose a self-canceling installment note, your company’s buyer will make various payments to you under a promissory note, and in the event of your death, any remaining payments will be canceled. These options and many others are available to you when it comes to the succession of your company. As a Houston business lawyer with over 35 years of experience, I can guide you on the best choice for your business entity and your succession goals.
Estate Planning Considerations
In conjunction with succession planning for your business, I can assist my business clients with overlapping concerns of their personal estate plans. You want to make sure your personal finances are in order, and I can help you draft your complete will, detailed trusts and durable powers of attorney. This includes strategies for avoiding the delays and expenses of probate proceedings, such as setting up a revocable living trust, pay-on-death accounts and/or joint ownership of property.
With Good Planning, The Show Will Go On
There is peace of mind in knowing that the enterprise you built and fostered will continue, whether it passes to your offspring, a key employee or some other party. I can help you preserve and protect your own financial interests while arranging for an orderly transition to the new owners.
Patricia M. Davis, Attorney at Law serves businesses in Houston, Fort Bend, Galveston and beyond. Call my office at 713-936-9553 to arrange a consultation or email me.