Entrepreneurs are busy people and usually don’t have the time to think about unforeseen events, especially their own deaths or retirements. However, if Louisiana business owners don’t do some estate planning regarding how their businesses can outlive them or live without them at the helm, chances are they won’t be able to survive for long. Planning for a transition in ownership is crucial if a business is to continue on for many years.
Owners of family businesses usually have their ideas in their minds and don’t always write down what those are, so that others can take them and continue to grow the business with them. Those unwritten ideas and ways of doing things that have been successful for years are no good to anyone if they’re unknown. Inclusion of family members who are slated to take over a business once its primary stakeholder is no longer able to oversee operations is imperative.
There are more than five million family businesses in the United States, making up more than half the gross domestic product (GDP). Yet many owners of those businesses have not done any estate planning at all regarding the succession of their businesses. Creating a formalized document is absolutely necessary.
A Louisiana estate planning lawyer is able to help business owners who don’t have the know-how, or the time, to plan for the future of their businesses. Succession planning doesn’t have to be difficult. Not doing it could be more costly to a family business in the long run. If there are no formal documents in place in the event of the owner’s death, things could get complicated.