Why business owners need a backup succession plan

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Be sure you’ve coordinated your estate plan and other agreements, where appropriate, with your business succession plan.

If you own a business, you should have a trust. And that trust should have specific instructions within it for how your business is to be handled.

You may want to consider naming an advisory board or committee to step in to run the business or advise your trustee on running the business if you’re not able to. A buy/sell agreement is generally used for corporations with more than one shareholder. For an LLC, the terms would be set forth in an operating agreement, and for a partnership in a…you got it, a partnership agreement.

 

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