Maryland Business Succession Attorneys Provide Answers and Planning Tools
Crafting a Sound Business Succession Plan to Preserve Your Hard Work
You have worked hard to establish a business. As a business owner, you are always planning your next move. At some point, you will no longer be involved in the business. Maybe you want to retire and walk away on a particular date. Perhaps you want to cede day-to-day operational control and sell your ownership interest over time. Then again, you may want to run the business until you can no longer physically able to do so. Whatever the case, it is critical to have a sound business succession plan in place. Our team will work with you to understand the unique dynamics of your business and establish a responsible business succession plan to fit your needs.
No “One Size Fits All” Solution to Business Succession Planning
Business succession is a complex process and every business is unique. There is no “one size fits all” solution to winding up or transitioning a business. We understand that, like you, your business is unique.
At Altman & Associates, we believe that the four most important goals of business succession are establishing: (1) a new management structure, (2) an ownership transition plan, (3) a strategy for dealing with the taxation ramifications of transitioning a business, and (4) financial security for you. This last part is particularly important, as you do not want to transition into an unstable financial situation. Our founding attorney, Gary Altman, Esq., is also a Certified Financial Planner™. He and his team help you understand potential legal and financial ramifications of business succession for you, your family, and your business.
In order to understand how to formulate a plan for business succession, you should start considering the answers to a number of important questions, including:
- Do you know how you are financially going to achieve your retirement goals? You should identify a cash value for your retirement portfolio which represents a comfortable lifestyle.
- What is your business worth today? You must understand the cash value of your business in the market, not what it means to you personally. Getting the actual valuation is the only way to understand the tax ramifications involved.
- What does your income stream from your ownership interest look like? Your value in your business is your ownership interest. You should determine how to receive the most monetary value in exchange for that interest, along with whether you need the money now or over time.
- Do you know how to sell your business and receive optimal tax treatment? You need to decide whether you want to sell to family, other owners, or a third party. When you make a decision, you must then structure the transaction to minimize your tax liability.
- Do you have a plan to provide for your family if something happens to you? You may choose from a variety of ways to sell your business or transition to your retirement. But is your business succession plan a part of your estate plan? You must ensure that your family is taken care of and supported through your business succession plan – regardless of what happens to you.
Planning to Protect Your Life’s Work
At Altman & Associates, our attorneys provide the trustworthy guidance you need to determine next steps for your business and your future. We’ll help you answer the questions above and come up with innovative, personalized solutions to protect your life’s work. Contact us by phone at (301) 468-3220 or online to schedule a meeting at one of our convenient office locations in Maryland, D.C. or Virginia.