There are many family businesses across Florida that claim long-lasting legacies in a particular field. When you are the company that manages not only to succeed, grow and persevere for decades, you want to make sure that you are doing everything possible to keep the business pointed in the right direction.
Disputes among family members after the passing of a business owner are common. Below, we discuss a few steps that you can take to help limit potential litigation that may arise in various scenarios. Knowing how to effectively plan for the future can make any transitions easier for everyone involved.
Draft clear operating agreements
This is one of the very first things you should do if your business currently does not have such an operating agreement in place. Not only do these documents discuss the various roles of individuals in the company, but they may provide what will happen in the event a dispute develops between interested parties. Clear guidance is essential to keep one-day problems from becoming years-long nightmares.
Create a succession plan
Thinking about the future can be difficult – but, as difficult as this may be, it is absolutely essential that your loved ones know what to do should you pass away. When you determine how you would like to transfer your business interests in the event of your death or incapacity, your loved ones will know who to turn to in order to keep the company up and running.
Far too often, business owners tell heirs about their plans, but never take the step of actually formalizing these plans. Quite often, shen the creator’s of the business pass away, there are disputes among heirs who feel they should be entitled to a portion of the company or its profits. Taking the time to plan for the future can provide the type of guidance family members need to ensure the business remains thriving.
Review your situation periodically with an attorney
Even if you have these items in place, you should review them from time to time with an experienced attorney. Situations often change. People who were important to you may no longer be a part of your life. Children who showed a strong interest in the business may have decided to do other things with their lives.
An attorney can help to assure that you have everything you need to reduce the uncertainties that can develop during the lifetime of a business. Extensive planning can provide you with the peace of mind that your company will continue to be a vital part of the community.