On behalf of Thaler Law posted in business formation
on Wednesday, July 10, 2019.
It’s impossible to predict the future, but there are specific things that business owners can do that will protect their long-term interests. One of these things includes implementing certain plans and procedures during the business formation process that will go into effect in the event of their sudden death. California businesses can suffer greatly if their leadership passes away, and there are certain things an owner can do to ensure continued operations.
An example of this happened recently to a small business in another state. The owner unexpectedly passed, and his family was left scrambling, trying to decide what to do with the company. One member of the family stepped in and began to pick up the pieces, but it was a difficult period for everyone as they were grieving their loved one while also working through business-related issues. He did not have a succession plan in place, and it led to significant complications for those left behind.
California business owners would be wise to take the time to think about these things, even during the business formation process. Failing to have plans in place can lead to difficulties for loved ones and perhaps even result in the closure of a beloved family business. No matter the size or type of business, having a succession plan is important.
A complete assessment of the individual circumstances can help a business owner understand what he or she needs to do to provide security for the future. During the business formation process, it can help to reach out to an experienced legal advocate about drafting a succession plan. This small step can allow a business owner to look to the future with confidence.