Business succession refers to the series of estate planning decisions a business owner makes to ensure their enterprise lives on after them. Regardless of the size of the business one might own, having a plan in place should be considered an essential safeguard. Below is an introduction to the topic of business succession and the benefits it provides.

The 5 Ways to Transfer Ownership

The transferring of ownership in business succession typically occurs through one of five possible avenues. The business owner decides which option is most appropriate for their situation. These options are:

• Passing ownership to an heir
• Selling one's share of the business to a co-owner
• Selling one's share of the business to a key employee, like a vice-president or manager
• Selling one's entire business to an outside company
• For a business with several owners, selling one's interests back to the company to be redistributed among the remaining owners

Benefits of Business Succession

First and foremost, making business succession arrangements guarantees that your wishes and plans for the company are honored even after you're gone. There's no confusion about what you intended for the enterprise, as you've laid it all out in black and white. If a purchase by another party is part of the succession, the terms of the purchase are known and agreed upon once the estate plans are drawn up. In other words: There is total transparency about what you intend for the business and its future, as well as what the roles and responsibilities of all involved parties will be.

The business and estate attorneys at Zangari Cohn Cuthbertson Duhl & Grello P.C. will help you design the ideal plans for your business. Since 1946, they have been representing New Haven County, Connecticut, residents in a variety of legal issues. Call (203) 789­0001 or visit them online to schedule an appointment, and start getting the peace of mind that comes with business succession planning.