CHAPTER 32Retirement and Succession Planning
What happens to your business when you retire or die? For many business owners, the pandemic has brought this question to the forefront. Have you made any decisions about whether to sell your interest, pass it on to children, or make other arrangements? Over 50% of all businesses in the U.S. are family owned, yet only 15% of them have any succession plan in place, according to a survey by the National Bureau of Economic Research's Family Business Alliance. If you are planning to retire, will the sale of your business provide you with sufficient funds for a comfortable retirement? The plans you make will have practical and tax implications for you, your family, and your business.
Succession planning is a complex and ongoing process involving both practical (business) and legal concerns. This chapter is designed to acquaint you with some of the issues you'll need to address in succession planning; it does not address every issue that may apply to you. For more general information about succession planning, you can take a free online course from SCORE at https://www.score.org/event/simple-steps-exiting-your-business-succession-planning. Work with a knowledgeable adviser to help you structure, monitor, and modify your succession plans.
Retirement Planning
Looking ahead to ...
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