What is a business succession plan?

A business succession plan is a legal plan for the transfer of ownership or control of a business after the death or retirement of the current owner. Many business owners in Pennsylvania opt for a business succession plan to protect their legacy and ensure the continuity of their business after they are no longer its leader. Creating a business succession plan requires understanding of several different legal concepts, including estate planning, asset protection, tax strategies, and business strategies. Estate planning can involve creating a trust or will to decide how the business assets are to be distributed upon the death of the current owner. Asset protection includes taking measures to prevent creditors or others from collecting on the business owner’s assets. Tax strategies involve working with a professional to determine how to minimize the amount of taxes owed by the business. Lastly, business strategies involve developing plans to ensure that the new ownership of the business is successful. The right business succession plan can help protect a business owner’s legacy, their loved ones, and the business itself. Business owners in Pennsylvania should work with an attorney or financial professional to develop a comprehensive plan that meets their needs and works for their business.

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