To ensure the success of a business, it is important to have a plan. Not only do thriving business owners make a comprehensive plan for the formation and running of their companies, but they may also make plan for the daily and seasonal needs of their businesses. In this way, they are better able to intercept trouble and take advantage of opportunities. Sadly for many Pennsylvania business owners, one aspect of business law that is difficult to consider is what happens to the business after they die.
Without a plan for who will take over the business after the owner’s death, many business owners leave their hard work to the discretion of the courts. Instead of providing a resource for loved ones to draw upon, the business becomes a burden for heirs to fight over, sell or allow to dwindle into obscurity. Creating an estate plan for one’s business may be unpleasant to think about, but the benefit for one’s family can be immense.
Some of the basic steps one can take to prepare one’s business for the long term include establishing a plan of succession. This is not something an entrepreneur can do overnight, and it may take years to gradually put it into place. Meanwhile, a business owner can ensure he or she has a will or trust in place, health care directives, powers of attorney and adequate insurance with appropriate beneficiary designations.
Once a plan is in place, it is important for business owners to review it periodically and alter it for changes in one’s life. A Pennsylvania attorney with experience in business law can provide guidance to ensure one’s estate plan properly protects one’s business and provides security for the future. A business owner can also contact an attorney for other legal matters that arise throughout the life of the business.