Business Succession Planning Services

What is a Business Succession Plan?

A business succession plan is the process of preparing for the transition of leadership and ownership of a company.  In Florida, you have to look at specific legal and tax considerations. Otherwise, you guarantee that the business and its assets end up in probate.

A good business plan will include:

• an exit plan;
• a legacy plan; and
• an emergency plan.

The basics need to be covered in your business plan. The basics include:

• List key personnel, contractors, and accountants in a document.
• List of business accounts, software, licenses, insurance policies, and digital assets (such as websites).
• The company’s standard operating procedures (“SOP”).
• A durable power of attorney that includes businesses and partnerships.

On my end, I want to avoid probate for my clients in all things, so if the LLC or Corporation was created here in Florida, I want to make sure that there is an operating agreement or bylaws.  I also want that document to allow the owners to assign their interest without approval of anyone in certain circumstances. We want to allow assignment upon death to a surviving spouse, a trust for the benefit of spouse, children or maybe even other family members.

A good business succession plan will include exit planning, legacy planning, and emergency planning specifics.

• Exit Plan: Do you own the business on your own or do you have other members or partners? Are they going to have the Right of First Refusal?  How can we ensure that the business continues in a smooth transition?
• Legacy Plan: Will your employees take over your business? Do you plan to leave your business to kids/family?  Will the business be sold?
• Emergency Plan: What happens in the event of your sudden death or disability?  Do you have a durable power of attorney listing an agent that can handle the business?  Is there going to be insurance that the company pays for just in case the owner becomes incapacitated or passes?

All of this needs to be documented in the company’s governing documents.

A succession plan tailored to Florida law ensures compliance with state-specific regulations and minimizes potential liabilities. When we prepare a business succession plan for clients, we provide counsel on strategies to avoid probate, address potential disputes, and consider the tax implications of transfers.  Contact us now to schedule a consultation.