Moorestown Succession Planning Attorney
What would happen to your business if you suddenly passed away? Perhaps you’ve arranged for someone in the family to take over. However, do you know for sure if the terms of your estate plan are compatible with the bylaws and articles of incorporation of your company? In most cases, bylaws are drafted and approved according to a company’s articles of incorporation. Consequently, they typically indicate who has the legal authority to make decisions and bind the company contractually.
As a result, it’s essential that what is contained in the bylaws of your business be compatible with what is contained in your will and business succession plan. Especially when a family-owned and operated business involves aunts, uncles, and cousins, the potential for conflict is significant unless you take steps to ensure your estate plan is consistent with and reinforces what is contained in your company bylaws.
What to include in Business Succession Plans for Family-Owned Companies
While every business and company is different, a business succession plan can minimize disagreements and legal complications by facilitating a smooth transition regarding the following issues:
- Operating Agreement of an LLC or Partnership Agreement of a partnership
- Intellectual property rights
- Licensing agreements
- Treatment of the interest of a departing owner
- Franchise agreements
- Business ownership issues
- Buyout provisions
- Details regarding capital contributions
- Transfer of company properties
Liability Issues and Disputes – The Importance of Business Continuity Plans
So, what happens if the terms of your estate plan are not consistent with what is contained in your company bylaws, partnership agreements, or articles of incorporation? Disagreements could arise between family members regarding buyouts, the right to franchise, who gets to run the company, or how company property is to be distributed. While a business succession plan can’t guarantee that legal disputes won’t arise, it can protect your business from certain legal problems by reinforcing what is contained in your bylaws and articles of incorporation.
Contact Moorestown, New Jersey Business Succession Plan Attorneys
At LaVan Law, our attorneys work closely with business owners in order to review their estate plan and the bylaws and articles of incorporation of their company. Regardless of whether you already have a business continuity plan or are interested in creating one, we carefully review how your company is structured and what your estate plan says in order to ensure they compliment one another.
To schedule an appointment and learn how we can help you, contact Moorestown, New Jerseey business continuity attorneys at LaVan Law today.