Skip to content
Holmes Business Law
Holmes Business Law
215-482-0285
  • Home
  • Attorney’s & Areas of Law
    • Business Entities
      • Corporations
      • Limited Liability Company (LLC)
    • Business Purchase or Sale
    • Raising Capital & Investor Agreements
      • Promissory Notes and Debt Financing
      • Private Placement and Equity Financing
    • Business Contracts
      • Consulting Agreement
      • Employment Contracts
      • Independent Contractor (1099) Agreements
      • Website Terms and Privacy Policies
    • Copyright & Trademark
    • Hiring Employees/NDA/Non Compete
    • Succession Planning
    • Commercial Lease
    • The Right Start Program
  • About
    • Speaking & Events
    • Webinars
    • Client Testimonials
    • Privacy Policy/Terms of Use
    • Contact
  • Business Success Tips
  • Flat Fee Services
    • New Businesses
    • Existing Businesses
    • Dispute Resolution
    • Trademarks & Copyright
    • Succession Planning
  • 215-482-0285

What Happens To Your Business When You Die (hint: you won’t be reunited in heaven)

7/12/2015
 

Death is not anyone’s favorite topic, just ask any estate planning lawyer how hard it is to get people, especially those under 65, to agree to make an estate plan. However, avoiding the subject is not good for you or your business.

If you own and run a viable business, maybe you’ve thought about what will happen to it when you’re no longer around. If you have a spouse, children or family members that you’d like to pass it along to, that doesn’t automatically happen if you haven’t properly planned. If you own a business with partners, you are hopefully aware of what happens to your portion of ownership after you’re gone. Assuming your spouse or children will be able to take over your part of the business is foolish.

If you have no plans in place for your business, it may need to be liquidated. That means your dreams of passing it to your children, spouse, nieces or nephews, are up in smoke. Not to mention that there could be undesirable tax consequences if you haven’t planned properly (or at all). In a business with multiple partners, it’s likely there are provisions that your share of the business may pass to your estate, but must be sold to your remaining partners. Even if your surviving spouse or children are allowed to remain in the business, they are probably prohibited from making any decisions or exercising any voting power.

If you’re a solo business and don’t regularly involve your spouse or children in its affairs, who is going to know where your business bank accounts are, where any business assets are kept and how to find your records? If you have a business that generates a lot of money that you keep in the business, it’s imperative that someone else knows where the money is held in the event of your death.

No one wants to think about death, but if you are a business owner, it’s absolutely critical to plan for your business after you’re gone. If you don’t, you’re leaving your family with a mess, possibly large tax bills and in the worst case, nothing at all if you haven’t properly provided for them with a smart estate plan and business succession plan.

To learn about our business succession planning services, click here.


Author

Sarah E. Holmes is a Philadelphia business attorney and strategist that helps start ups and established businesses looking to expand, protect their assets and increase their profits in an approachable, down-to-earth way. When you're looking for a business lawyer in Philadelphia, the Main Line or New Jersey, we can help.

Categories

  • Uncategorized

Archives

  • May 2022
  • April 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • June 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • May 2017
  • April 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013

HOLMES BUSINESS LAW, P.C.

​1515 Market Street, Suite 1200,
Philadelphia, PA 19102
___________________________
40 E. Montgomery Avenue
4th Floor, Ardmore, PA 19003
​

​© 2022 by Holmes Business Law P.C.
All rights reserved.

  • ATTORNEYS & AREAS OF LAW 
  • Business Entities
  • Business Purchase or Sale
  • Raising Capital & Investor Agreements
  • Business Contracts
  • Copyright & Trademark
  • Hiring Employees/NDA/Non Compete
  • Succession Planning
  • Commercial Lease
  • The Right Start Program
  • BUSINESS SUCCESS TIPS

  • ABOUT 
  • Speaking and Events
  • Webinars
  • Client Testimonials
  • Privacy Policy/Terms of Use
  • Contact
  • FLAT FEE PACKAGES 
  • New Businesses
  • Existing Businesses
  • Dispute Resolution
  • Trademarks & Copyright
  • Succession Planning

  • REVIEWS

​All site content is subject to copyright 2021 by Holmes Business Law P.C.
This website and its content herein constitutes attorney advertising.  Any content on this website should be construed as informational, not legal advice.  No information on this website is intended to create an attorney-client relationship.  Only a signed fee agreement between Sarah E. Holmes and the client will establish an attorney-client relationship.  Use of any information on this site is provided “AS IS” with no warranty of any kind, either express or implied.  Always consult with a licensed attorney in your own state for legal advice.