{"id":18734,"date":"2016-02-04T22:25:30","date_gmt":"2016-02-05T03:25:30","guid":{"rendered":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2016\/02\/business-report-dont-put-off-business-succession-plan.html"},"modified":"2017-11-08T13:37:52","modified_gmt":"2017-11-08T18:37:52","slug":"business-report-dont-put-off-business-succession-plan","status":"publish","type":"post","link":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2016\/02\/business-report-dont-put-off-business-succession-plan\/","title":{"rendered":"Business Report: Don't Put Off Business Succession Plan"},"content":{"rendered":"\n
\n
\n

\"brittiny\n<\/div>\n

\n

Razzano is an associate with the Herzog Law Firm in Saratoga Springs.\n<\/p><\/div>\n<\/div>\n

BY BRITTINY B. RAZZANO<\/p>\n

Excuse Number 1: Too Busy.<\/p>\n

As a successful business owner, you may
\nhave your hand in the day-to-day operations
\nand management of your business. It seems
\nlike there is never enough time to sit down
\nand formulate a plan for your business when
\nyou retire or after you pass away.<\/p>\n

You have worked hard to make your business
\nthrive. It’s worth taking the time to ensure
\nits continued success. If you wait too long, it
\nwill become more difficult to retire when you
\nwant to, you may get a lower price, or ultimately
\ngenerate a greater tax liability. In the worst case
\nscenario, you may pass away unexpectedly
\nwithout ever formulating a plan, putting the
\nfate of your business in jeopardy.<\/p>\n

If you plan ahead, you will be able to clearly
\nstate your intentions and put your important
\nbusiness operations in writing, to act as a road
\nmap and guide for the future generation of
\nyour business.<\/p>\n


\nExcuse Number 2: Loss of Control.<\/p>\n

It is difficult to give up control of a business
\nthat you have worked so hard on. However, if
\nyou maintain sole control and refuse to delegate,
\nthe future successors of your business will
\nnever be properly trained for when the time
\ncomes for them to take over, whether that’s
\nwhen you choose to retire, are forced to retire
\ndue to disability, or pass away unexpectedly.<\/p>\n

By delegating while you are still managing
\nthe business, you can ensure that your successors
\nwill be trained under your guidance and
\nbenefit from your experience. You will also be
\nable to instill your values and techniques to
\nensure the continued success of your legacy.
\nIf you choose to retire from the full-time day-to-day
\noperations of the business, you have the
\nopportunity to act as a consultant on a part time
\nbasis to stay involved with your business
\nby not cutting all ties at once.<\/p>\n

Excuse Number 3: Uncertainty of Future
\nSuccessors.<\/p>\n

It may take time to determine the best successors
\nfor your business. By procrastinating,
\neven considering your choices, you run the risk
\nof losing control of this choice. As mentioned
\nabove, by delegating positions, you can test out
\nfuture successors to be sure that they will be
\na good fit, provide them with an opportunity
\nto take time to learn the position, and ensure
\nit is something that they want to pursue. You
\nmay want to consider instituting a mentoring
\nprogram as a way to provide for a smoother
\ntransition. In some businesses, the choice for
\nsuccessors is clear, because there are multiple
\npartners or because it’s a family business with
\nmany members currently involved in the
\nbusiness. However, family businesses are very
\ntricky, particularly when only some of your
\nchildren are involved. This is especially cumbersome
\nwhen dealing with estate planning,
\nif it is your wish to split everything equally
\nbetween your heirs.<\/p>\n

Excuse Number 4: Complex Tax Issues.<\/p>\n

Tax issues are at the heart of all transactions
\nand business succession plans. There are
\nincome and capital gains issues to consider, as
\nwell as gift and estate tax issues. Before entering
\ninto a transaction or considering a business
\nsuccession plan, it is imperative that you
\nconsult with your attorney and accountant to
\nensure that you are transferring your business
\nin the most tax-efficient way possible.<\/p>\n

It is important to consider tax issues far
\nin advance of any transaction, as it may take
\ntime to analyze and ultimately determine the
\nappropriate course of action.<\/p>\n

As always, it is important to consult with
\nyour trusted advisors, such as your attorney,
\nyour accountant, and your financial advisor,
\nto assist you with your business succession
\nplan. Be sure to review your plan on a regular
\nbasis to ensure that it remains in line with
\nyour goals.<\/p>\n

Don’t gamble with the future of your business.
\nWith the proper planning, you can arrange
\na fruitful retirement and the continued
\nlongevity of your business long after you’re
\ngone.<\/p>\n","protected":false},"excerpt":{"rendered":"

Razzano is an associate with the Herzog Law Firm in Saratoga Springs. BY BRITTINY B. RAZZANO Excuse Number 1: Too Busy. As a successful business owner, you may have your hand in the day-to-day operations and management of your…<\/p>\n","protected":false},"author":121,"featured_media":24810,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,32],"tags":[],"class_list":["post-18734","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-reports","category-legal-accounting"],"yoast_head":"\r\nBusiness Report: Don&apos;t Put Off Business Succession Plan - Saratoga Business Journal<\/title>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2016\/02\/business-report-dont-put-off-business-succession-plan\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"Business Report: Don&apos;t Put Off Business Succession Plan - Saratoga Business Journal\" \/>\r\n<meta property=\"og:description\" content=\"Razzano is an associate with the Herzog Law Firm in Saratoga Springs. 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