Estate Planning for Small Business Owners in Missouri
As a small business owner in Missouri, you need to stay on top of your estate planning so that you are always ready for the unexpected. The future of your business and family is hanging in the balance. Don’t leave it up to chance. Contact a St. Louis estate planning lawyer today and take proactive steps to map out the future of your small business in detail with a comprehensive estate plan.
Small Business Succession
One of the building blocks of small business owner estate planning is having a business succession plan. This plan creates contingencies for if you retire, pass away or become incapacitated as the sole owner or a partner in a small business.
Your business succession plan should name who will take over in your stead, such as a partner, family member or employee. A buy-sell agreement is essential to meet this goal. If you wish for your business to be sold, your plan should also express how ownership interest should be valued and transferred to a buyer.
Smooth Transitions
A business succession plan should also protect your small business by ensuring the smoothest transition possible, with a focus on continuity for your clients or customers. You may wish to implement a revocable living trust, for example, to allow for the private transfer of management to a successor without a public announcement.
Your estate plan can include detailed protocols for how your successor should handle business operations. These instructions can be essential for maintaining your customer base and retaining their trust in your company – thus sustaining your small business’s market value once you are no longer at the helm.
Taxation Minimization
Estate planning for your small business comes with federal tax implications. However, a robust plan can prepare your business succession in such a way that minimizes your tax liabilities as much as possible. Establishing an irrevocable living trust, for example, can save on future business taxes by allowing all future growth to occur outside of your estate, without any attached estate taxes.
Liability Protection
Litigation can put the future of your small business at risk. A smart estate plan can protect your company from liability that may otherwise arise from the sale of your small business. For example, an estate plan can remove your assets from your business ownership – separating personal and business assets – to protect them from potential litigation in the future.
Personal Estate Planning
As a small business owner, you also need to plan for your personal estate. Your plan should include a last will and testament to distribute your hard-earned assets and business profits, as well as a power of attorney and health care directive to make important decisions for you if you cannot. Revocable living trusts are also common estate-planning tools that can help protect an estate and prevent it from going through the public probate process.
Contact an Attorney for Small Business Estate Planning in Missouri
If you own a small business in Missouri, it deserves the full protection of a strong and personalized estate plan. As an entrepreneur, sole proprietor or limited liability company, your plan should address all of your unique needs and concerns regarding your business and how it will be managed in the future.
The best way to ensure your legacy lives on is by enlisting the help of an experienced estate planning attorney. A lawyer with experience building estate plans for business owners in Missouri will know how to achieve your goals through the right legal documents, along with added protections for your personal assets.
To get started with a small business estate plan, contact TdD Attorneys at Law for a free consultation.