Avoid legal headaches and costly disputes with a business succession plan. Address all contingencies to create a smooth transition to the next generation or new ownership. Through proactive planning, our Utah business succession planning attorney can help you preserve the value of your business and provide peace of mind for you and your family.
Unplanned transitions often lead to disputes between partners or family members, legal challenges, or worse - business closure. Avoidable tax liabilities strip away your hard-earned wealth and create additional stress for everyone involved. Business succession planning provides a clear path for the next generation, helping you secure the legacy you’ve worked so hard to build.
Our business succession planning lawyer works with you to understand your unique goals and challenges. We then tailor your business succession plan to align with your vision for the future.
Coordinate your business succession plan with your personal estate plan to create a seamless transfer of both business and personal assets. This integrated approach helps minimize taxes, avoid probate, and protect your wealth for future generations.
Ensuring that the key employees (often family members) are prepared to take on the challenges of running the business is essential. Successful transition requires skill development, knowledge transfer, relational capital transition, and potentially employing additional key personnel.
Restructure your business to better facilitate the transition to family members or new owners and minimize operational disruptions.
Minimize estate taxes and income taxes as ownership changes hands.
Secure your business assets from future creditors, lawsuits, and unforeseen risks with the strategic use of irrevocable trusts, limited liability companies, and other legal entities.
Adapt your estate and business succession plan to changes in laws and circumstances.
Many people are unaware that their business successors cannot buy the business tax-free. Buying a business with after tax profits can even be impossible. Structuring the deal for enhanced depreciation strategies, and funding buy-out liquidity under tax advantaged deal structures is essential.
Cross purchase insurance, often held in a protective structure, and even bank financing of insurance can dramatically increase the tax efficiency and even feasibility of the buy-out.
Every business is unique, and each business owner's goals and circumstances are different. Your business succession plan will be customized to fit your specific needs and will include the necessary legal documents to protect your interests, minimize taxes, and protect your business's success.
Define how ownership interests will be transferred in the event of an owner’s departure, retirement, or death, reducing the risk of disputes among partners or family members while managing the tax consequences of the change in ownership.
Use irrevocable trusts to manage business ownership transfers while minimizing estate taxes and maintaining privacy.
Grant authority to a trusted individual to make decisions on behalf of the owner if they are incapacitated, providing continuity during uncertain times.
Tailor your LLC operating agreement to outline the management structure, decision-making processes, and ownership arrangements post-transition.
Establish clear guidelines for shareholder rights and responsibilities, helping to maintain stability and control during ownership transitions.
Facilitate the transition of ownership to employees, fostering loyalty, preserving company culture, and providing a tax-efficient exit strategy for business owners.
Define benefits to be paid to an owner or key employee after retirement, helping retain talent and incentivize successors.
Whether you decide to transfer ownership to family, partners, employees, or even sell to someone new, each path has its own risks and benefits.
Family dynamics can make things complicated. Without a plan in place, misunderstandings about roles and responsibilities can lead to disputes. A clear succession plan for your family business helps set expectations and reduces the risk of conflict so everyone involved can move forward with confidence.
Keeping the business with your partners provides continuity and stability. But without the right agreements in place, disagreements over valuation, shares or control can put the company at risk. Planning ahead keeps the business on track during the transition.
Selling to employees rewards their loyalty and helps preserve the company culture you’ve worked so hard to build. But structuring the buyout can be complicated and financing can be tough. A business succession plan makes the process smoother and benefits the business and your dedicated employees.
Selling to an investor or competitor gives you a clean exit but a new owner may want to take the business in a different direction which could harm your employees or customers. Careful negotiation and planning helps you protect what matters most to you—your people, your brand and your values.
Liquidation should be considered a last resort—especially without proactive planning. Assets might be sold for much less than they're worth, unexpected taxes could take a big bite out of proceeds, and creditor claims may leave little behind for your family. By planning ahead, liquidation can be less damaging and ensure your loved ones receive the maximum benefit.
Let us help you protect your legacy with a clear, customized succession plan.
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