LLCs & Business Succession Planning

A common concern in estate planning is the handoff process of a family business. Business succession plans organizes assets, transfers deeds, and support the transition of ownership. 

Two key considerations when creating a business succession plan are limiting exposure to business liability and creating a structured handoff plan.

Forming a Limited Liability Company (LLC)

Whether you own a business or rental property, liability can arise in many forms. A lawsuit or unexpected debt could put your personal assets at risk if the business or property is held in your individual name. 

Forming an LLC can create separation between personal and business assets and reduce exposure to financial or legal claims. Separate LLCs are often recommended for each investment property or family business to help keep liabilities from one asset or entity from affecting another.

Detailed Planning for Succession

A lot of the stress and hassle involved in business transitions can be eliminated with clear planning. 

Creating a handoff plan for a business typically includes clarifying the intended beneficiary and making intentions for the future of the business clear to the successors. 

Business succession planning services can be added to any estate plan at Custom Estate Planning.