Rockford Business Succession Planning Attorneys
Protecting Busines Owners Throughout Illinois
At Estate Law Partners, LLC, we believe that family businesses are a crucial part of the United States economy and support countless households. In fact, family-owned or controlled businesses make up 90% of all businesses in the United States, and it is estimated that 50% of all wages in the country come from family businesses ranging from small mom and pop shops to gigantic Fortune 500 corporations. Our Rockford business succession planning attorneys proudly provide the qualified legal counsel clients need to prepare for the future.
Helping Clients Transfer & Protect Business Interests
Did you know that only one-third of ownership transferals in the U.S. actually succeed? Additionally, only 50% of these business operations will ever make it to a second generational transfer. This usually happens because of poor management in transferring ownership as each generation struggles to successfully survive the change.
Factors that contribute to the success or failure of a family business include:
- The level that the founder has prepared estate planning for the whole family: If owners have not carefully planned how their spouse, children, or a non-related employee will take over the business for them, then the company can quickly go downhill without the original owner.
- Estate tax uncertainty: Business owners need to make a plan to properly liquidate their estate in compliance with state and federal law, otherwise, their family might be forced to give up the business to pay off debts arising from estate taxes.
- Carefully coordinated financial and estate plans for the future: Business owners need to devise detailed estate plans that not only ensures business objectives are properly funded, but that the right amount of liquidity is also offered for estate taxes, business debts, and any other needs of the family who are dependent on the business but not necessarily contributing to its activity.
Business Buy-Sell Agreements
Business buy-sell agreements go into effect when designated “triggering events” occur. Triggering events can include a business owner’s retirement, the onset of disability, or even death. A buy-sell agreement is a binding contract that allows a smooth transition to the designated new owner or owners of the business, without the hassle of dividing the business amongst multiple parties. Our business succession planning lawyers in Rockford can provide you with the reliable counsel you need to properly set up a buy-sell agreement for your business.
To determine what planning tools you need to prepare your business for the future, please give us a call today at (815) 335-9950 to schedule your free case consultation.