5 Essential Estate Planning Tips for Business Owners
As a business owner, you've worked hard to build your company from the ground up. But have you thought about what will happen to your business when you're no longer around? Estate planning isn't just for the wealthy - it's essential for anyone who wants to protect their assets and ensure their legacy lives on. In this episode, elder law attorneys Bri Begley and Greg McIntyre
discuss the importance of estate planning for business owners and offer some valuable tips to help you get started.
1. Draft Operating
Agreements
One of the first things you should do when setting up a business is to draft an operating agreement. This agreement outlines the rules and regulations for how the business will be run, including who has decision-making power and how profits will be distributed. It's essential to have an operating agreement in place to prevent
disputes and ensure that the business runs smoothly.
2. Create Bylaws for Corporations
If your business is set up as a corporation, you'll need to create bylaws that outline the rules and regulations for how the corporation will be structured and run. Bylaws should cover topics such as shareholder meetings, voting procedures, and how board members are elected.
3. Set up Buy-Sell Agreements
A buy-sell agreement is a legal contract that outlines what will happen to a
business if one of the owners dies or becomes incapacitated. This agreement sets a price for the business and outlines how ownership will be transferred. By having a buy-sell agreement in place, you can ensure that your business will continue to operate smoothly even if one of the owners is no longer able to participate.
4. Consider Taxation
Estate taxes can be a significant burden on your heirs, especially if you haven't planned for them. By working with an experienced
estate planning attorney, you can create a plan that minimizes the tax burden on your estate and ensures that your assets are distributed according to your wishes.
5. Protect Your Business with Keyman Life Insurance
Keyman life insurance is a type of life insurance policy that pays out if one of the key individuals in a business passes away. This type of insurance can be used to fund a buy-sell agreement or to provide funds to keep the business running in the event of a
key person's death.
If you're a business owner, it's essential to have an estate plan in place. By working with experienced elder law attorneys like Greg McIntyre and Brenton
Begley.
