After years of visualizing, planning, and establishing your small business, you should be proud to call the enterprise your own. However, it’s just as important to consider what will happen to your legacy down the line. If you haven’t started the estate planning process, use these insightful answers to protect your small business.

What to Know About Estate Planning as a Small Business Owner

Where do you begin?

If you’re overwhelmed by all the aspects of estate planning, start with drafting a will. If your business closes upon your death, this document will outline who receives certain assets, such as the property or remaining profits. If you hope for the business to carry on, you need to work on establishing a succession plan and consider how that affects the rest of your estate planning wishes. For example, if one child is interested in running a business and your spouse and other children are not, how does your business affect the rest of your plan?

What if you’re not the only owner?

If you own a small business with partners, you might want to set up a buy-sell agreement. This determines what will happen if one of you passes away.

For example, you might want the other partners to buy out your share and continue the project. On the other hand, you might want the business to shut down upon your death. If this is the case, you can use the agreement to set a fair sale price for the company.

How will online operations carry on?

Many small businesses use websites, social media accounts, and email inboxes to handle daily operations. However, as the company owner, you may be the only individual with access.

Your estate planning process should include writing down usernames, passwords, and security questions and answers, as well as keeping them safe and up to date until your passing.

Who will make decisions if you are incapacitated?

You can use the estate planning process to set up a financial power of attorney. This individual will make financial decisions on your behalf if you become incapacitated.

If you plan on having your business continue after you become incapacitated or pass on, your succession plan needs to take transition into account if you become incapacitated. Having a transition plan in place can help make sure the business continues to run with things like payroll, taxes, and logistics able to continue without your direct involvement. This will help your company stay afloat until you are able to return or smoothly pass the reins.

If you’re interested in learning more about estate planning as a small business owner, reach out to Trailhead Estate Planning in Signal Mountain, TN. This company is led by Attorney Peter Harrison, who is proud to help clients prepare for their passing and organize their assets. You can turn to this legal expert for personalized guidance. To learn more about his skills, visit the website. Call (423) 228-7029 to arrange an appointment.