Business Succession Planning Montana
Our Montana business succession planning lawyer knows that many business owners have addressed their estate plans but may not be aware of why they should also have a business succession plan in place, as well. Your estate plan covers your personal assets, but you should also have a plan in place that will address the future of your business after you pass away, or even if you decided to retire. Having two distinct plans for your estate and your business can set you up for a comfortable retirement and ensure that the details of your plans are dealt with in a way that you have predetermined. The following is a brief overview of the difference between the two types of plans. For more detailed information about your situation, contact Silverman Law Office, PLLC.
Estate Plan
Although at one time estate plans were only done by the rich, in today’s world, every adult should have an estate plan no matter what their financial standing is. The following are some of the issues that can be – and should be – addressed in an estate plan:
- The home you live in
- Your vehicle
- Any financial accounts
- Any real estate you own
- Your possessions
- Guardianship of your children
- Power of attorney
- Healthcare proxy
- Living will
When you plan your estate, you are deciding how your property and assets will be distributed, ensuring that your loved ones will be provided for when you are no longer here. If you do not have an estate plan in place, then the intestate laws of Montana will apply and your assets could end up going to people who you do not want to benefit from all of your hard work. This could also cause a delay in those heirs you do choose to receive those assets you have let to them. No estate plan often means family disputes and high legal fees, which could end up eating up the bulk of your estate.
Business Succession Plan
A business succession plan is separate from your estate plan. Instead, you are identifying ways your business will successfully carry on when you are no longer at the helm – either due to retirement or death. Your goal in a business section plan is to choose who you want to take over that helm, be it family members or employees. Conversely, your Montana business planning may be to sell your business so you can take those assets and provide financial security for your family.
Without a business section plan in place, your company is vulnerable to the uncertainty that your employees and even your clients may feel, leaving them with feelings of uncertainty and maybe even the decision to look elsewhere for employment or products/services.
Contact Our Law Firm Today
If you own your own business and would like to learn more about planning for your family and your company’s future, call Silverman Law Group, PLLC to schedule a confidential consultation with a skilled Montana business succession planning lawyer and learn what your options are.
Business succession planning in Montana is the process of identifying and developing potential successors for key leadership roles within a company.
Succession planning is often overlooked by small business owners, but it’s an important part of managing your company. By planning ahead, you can ensure that your business will thrive after you depart.
Here are some tips for business succession planning in Montana:
Identify Key Roles
Review each position within your company and assess its importance to the overall success of the business. If there are particular positions that are critical to maintaining operations, then they should be filled by someone who can work well with other employees and who has the skills necessary to succeed in the role.
Develop Training Plans
Create a training plan for each employee who could potentially take over one of those critical roles upon your departure from the company. You should also develop a plan for training new hires who may need additional training before they’re eligible for promotion or transfer into one of those positions.
Review Compensation Plans
Make sure that any business succession planning programs are fair and equitable so that employees know what they’re earning compared to others in similar positions at other companies within the industry — as well as those working under them at their current companies.
Review Policies & Procedures Manual
Review policies and procedures to ensure they’re up-to-date, relevant, and easy to understand. You may need an employee manual if you have over a few employees. It’s also a good idea to review your employee handbook so that everyone knows what they’re entitled to in terms of benefits and leave time — as well as what is expected of them while on the job.
What Kinds of Options Are Available?
The first thing any business owner needs to do is clarify what kind of Montana business succession plan they want in place. There are many different types of plans, but they all fall into three basic categories:
1) Succession by Sale
This option involves selling your business to another person or entity who will continue operations normally without any major changes in management or structure.
2) Succession by Merger
With this option, two businesses merge together under one management structure. This might mean combining two companies with similar products or services into one larger company with multiple locations throughout Montana or surrounding states. It might also mean combining two companies with different product lines but similar management styles so that both companies can benefit from the experience and expertise of each other.
3) Succession by Transfer
With this option, you transfer ownership of your business to another person or entity who will continue operations as normal without any major changes in management or structure. This can be done through a formal or informal agreement created by business succession planning that spells out what will happen to the business in case of your death, disability, or retirement. The agreement should also include details about who will take over management responsibilities and how any changes to the company structure will be handled in the future.
As you can see, there are many aspects to planning a succession. It is impossible to predict how long each family business will last; however, it is possible to plan for the transfer of ownership if you start now. Montana business succession planning offers your business the opportunity to learn about all aspects of ownership. Contact Silverman Law Office, PLLC today to schedule your consultation.Â
