If you own a small business, you’ll probably want to have a say in what happens to the company when you pass away. However, you may be confused about where to begin. Here’s some important information about estate planning to help you make sure your assets are properly distributed.

4 FAQ About Estate Planning for Small Business Owners

Why is estate planning important for small business owners?

When you pass away, the plans you made while alive will dictate what happens to your assets—including how and to whom they are distributed. When you include your business in an estate plan, you can rest easy knowing exactly what will happen to the product of your hard work. This will also keep the government from taking control and distributing your business to individuals you may not want to receive it.

Which estate planning documents are essential?

The most important document for small business owners is a will. This legal document will stand as an official declaration of your wishes for the future and must be signed and witnessed. In your will, you can name a successor, distribute profits your business made, and choose someone to oversee the affairs immediately after your death.

It’s also crucial to establish a power of attorney, who will take command of financial responsibilities after you pass away. This will keep everyday operations running, so you can continue to support your employees, pay utilities, and process orders. If you don’t appoint someone yourself, the court will, and it might not be the individual you envisioned.

What if I’m the sole owner?

If there is no one in line to take over your business, and you would like it to continue after you pass away, set up a succession plan as part of the estate planning process. Whether you choose someone in your family or interview candidates in the industry, you can maintain control for the foreseeable future.

What if I’m a part owner?

If you own the business with someone else or multiple others, your share may transfer to them once you pass. If you’re worried about how they will carry the company forward, add a written agreement to your estate plan. This may require the other owners to find someone else to fill your space, to maintain co-ownership of the company, or to sell it once you’re gone. You’ll all have to agree to the terms if you own the business together.

If you’re eager to start estate planning, get in touch with John E. Bach Attorney at Law in Goshen, NY. This lawyer has over three decades of experience, and caters to clients in several practice areas, from estate planning to family law. To learn more about his personalized approach, visit the website. You can also call (845) 294-7941 to schedule a consultation with Attorney Bach today.