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Why every business owner should have a business succession plan

Running a business is tough - the last thing that may be on your mind is what happens after you can't run it anymore. Far too many business owners fail to have a business succession plan in place for when they retire, die or are incapacitated, and it could put the very existence of your business at risk.

There are numerous reasons why you should have a plan in place if you don't already. Aside from the peace of mind, these are three reasons why many business owners make business succession planning a priority.

Call White Peck Carrington, LLP to discuss establishing a business succession plan today.

1. Your business is your legacy, you want to protect it

Many small business owners in Kentucky have either built their entire business from scratch or have expanded operations since their parents or grandparents were owners. After decades of hard work, you want to ensure your business is as secure as possible no matter what happens to you.

2. It helps ensure a quick and painless transition of ownership

If something happens to you, the business may incur a variety of costs to try to transfer your ownership to someone else. Especially if you have a specific heir to the family business, you want to lay out the process before it needs to happen. You can have the business valuated beforehand, and can set up a variety of measures to fund your transfer of ownership and minimize the tax burden on the next owner.

3. It is a vital part of your own personal estate plan

A business is just one part of your own personal estate plan, but it's a vital one. If you have an estate plan in place without a business succession plan, you aren't doing yourself any favors.

Business succession ties in with other estate planning tools as well. Life insurance policies and trust funds can be used to pay for related business expenses following your passing, and can help you allocate a fair share of assets to all of your beneficiaries.

One thing is for sure: nobody is ever fully prepared for a crisis to strike. For the sake of your business, your family and your legacy, business succession planning is a must for business owners.

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White Peck Carrington | 26 Broadway | P.O. Box 950 | Mount Sterling, Kentucky 40353-0950 | 859-274-4115 | Fax: 859-498-7363 | Map & Directions