Running a healthy small business is one of the best ways to set oneself up for retirement. An owner who has taken a business from inception to a thriving enterprise generally feels a great deal of pride and, in most cases, wants the business to remain viable after he ceases control and retires. However, business succession is a lengthy and complicated process that must be pursued by keeping in mind both the owner’s and successor’s best interests. Proper planning and implementation will entail working with various professionals, including a Massachusetts tax-planning lawyer.
The Complexities of Business Succession
As a small business owner, you are well aware of how complex and significant matters of organization, operations, and taxes can be. Business succession has its own set of complexities that need to be handled by a legal professional well in advance of your stepping down. A Massachusetts tax-planning lawyer will help you avoid the myriad pitfalls of business succession.
Planning
The cornerstone of business succession is planning. Many small business owners fail to spend time developing a succession plan, either out of procrastination or simple neglect. However, such a failure can be costly, and can even cause the business to be forced into liquidation. A succession plan may take a fair amount of time to develop, depending upon how extensive it is. The size and nature of the business will affect the size of the business succession plan.
Once a plan is in place, it will take time to be implemented, in some cases as long as five years. If you delay planning, not only are you limiting your choices, there may be significant tax penalties as well. You will need a Massachusetts tax-planning lawyer as well as bankers, business consultants, and accountants to assist you in developing and implementing a business succession plan that ensures the least tax liability and greatest chances for your business to remain viable for those who succeed you in managing it.
For Further Information
For further information on business-succession planning and other business law matters, Massachusetts tax planning lawyers at Ionson Law are here to assist. Please call (781) 674-2562 for an appointment.
