It’s Business, And It’s Personal

Business owners should make an exit plan in advance

On Behalf of | Aug 21, 2017 | Buying & Selling Businesses |

Entrepreneurs looking to open a new business in North Carolina may not be eager to think about a dissolution or plans to exit the venture. However, exiting a business doesn’t need to be a sign of failure. It can be a testament to success through a profitable sale or well-deserved retirement after years of activity.

Having a solid plan for exiting a business can be important for any entrepreneur, whether just starting out or are operating a business that has been running for many years. When business owners have one, they can plan financially and legally for all of the complications that can go along with moving forward.

When considering selling a business, establishing goals can help to make the process clearer and simpler. A goal of leaving the business financially secure can help owners to measure the various decisions and choices as they plan to move beyond the business. It can also be important to set specific goals like an amount of money they want to receive upon exit, their chosen successor and the time when they would like to leave the business.

If the business is meant to stay in the family, an estate plan that centers around the business’ future can be particularly important to ensuring continuity. A lawyer can provide important advice about structuring that transfer of ownership as well as an estate plan that minimizes tax burdens on heirs while ensuring a well-informed process. A lawyer can also help owners who want to leave the business more simply through a sale or transfer of ownership during their lifetimes.