Many people have a dream of starting and running their own business. It provides financial independence, the ability to work on your schedule and allows you to invest in yourself and your ideas. What many of those same people put off is determining what the end of their journey is going to look like. It’s easy to see how retirement from a traditional 9-5 job will work, but when you have to decide what to do with a business you’ve spent a good chunk of your life building, the retirement picture gets fuzzier. There are many ways to deal with these issues, but here are three of the more common ways one of our corporate lawyers can help you.
Planning for the Future
Whether you have a friend, business partner, employee, or family member who you think will take the reins when you’re ready to retire, it’s a good idea to make a formal plan ahead of time. It might feel a bit awkward asking someone you know and trust so well, but having rules hammed out in advance will save you and those taking over your business a lot of stress down the road. Not only will this plan help give you a clear roadmap to your retirement, but give your successor time to put together the money to take over, and plan for their own future.
When there is not a plan in place ahead of time, you are looking at more costs and more headaches right when you are trying to move away from those things and into your retirement. If you have someone in mind to take over your business, it is a good idea to consider a succession plan with your lawyer sooner rather than later.
Selling Your Business
If you do not have someone in place who you want to take over your business, you might end up exploring a sale of your business. Finding the right buyer and the right price for your life’s work is not where the journey ends, however. It is important that in any sale of your business or the assets of your business, you are as protected as you can be, both in terms of future liabilities and securing the payment of the purchase price. While some business owners choose to go this alone, it is worth taking the time to consult with a corporate lawyer who deals with these issues day in and day out, to make sure you are properly protected.
Dissolving Your Business
Maybe when you get to the end of your career you do not see the business going on without you. You do not have a successor in place, you are not interested in someone you do not know carrying on the business without and you just want to sell your assets and close up shop. In this case, you will need to make sure that you follow the appropriate steps and dissolve the business properly. If you do not, you might end up with unexpected headaches down the road, that you will be forced to deal with in the midst of your retirement. Consulting with a corporate lawyer at the front end rather than having to clean up later on is more time and cost effective, and will let you enjoy your retirement stress free.
Whether you are looking to dissolve, sell or plan the succession of your business, it is worthwhile getting in touch with a member of our corporate team. We can walk you through your legal options and help make sure you are secure in planning your exit from the business. Please contact me for more information on how I can assist you in making a plan for your business.
Bob Bell
Associate – Business Law Group
Disclaimer: This article is provided as an information resource. This article should not be relied upon to make decisions and is not intended to replace advice from a qualified legal professional. In all cases, contact your legal professional for advice on any matter referenced in this document before making decisions. Any use of this document does not constitute a lawyer-client relationship. Please note that this information is current only to the date of posting. The law is constantly changing and always evolving.