Business Transfer and Succession Planning

Business transfer and succession planning is the process of transferring a business from one generation to the next generation. Often times, there are tax and asset protection liability concerns that must be addressed when representing a buyer or seller. First of all, a key concern for a father transferring a business to his son is liability concerns. For example, the father today was the sole owner of a $5 million revenue company and his son has run the company for the last three (3) years. The father's goal was to limit his liability because his son was technically running the corporation anyway. It is best to have the proper paperwork filled out and transfer the business in a legal and efficient manner.

In today's transaction, we completed a sale of the stock or otherwise, known as a stock purchase agreement. The stock purchase agreement highlighted the key issues such as purchase price, liability limitations, and when the transfer was effective. Furthermore, a Bill of Sale transfers the equipment and personal property items to the buyer. It is a good idea for the buyer to incorporate as an S corporation to own their shares of whatever business entity they desire to have such as an LLC. There also should be corporate resolutions authorizing the officers of the corporation and shareholders the authority to sell the company to the buyer.

In conclusion, transferring a business from one generation to the next generation is vital. Business succession planning does not have to be too expensive. Robertson Law Group, LLC is your estate planning and asset protection law firm concentrating in business counseling and transfer planning. Sean Robertson is Managing Partner and can be reached at (312)-854-7102. Our website is www.RobertsonLawGroup.com.