Thursday, October 2, 2014
Family business succession planning is an art form that requires a thorough knowledge of related tax and state business entity law as well as a sensitive understanding of the personal relationships among family members. Below are internet sources on aspects of family business succession planning.
- Choice of Entity. To understand why the entity involved was chosen and whether it should be converted to a different type of entity look at Jason Havens’ Partnership Choice of Entity outline. This site compares general partnerships, limited partnerships, S Corporations and LLCs; listing the advantages and disadvantages of each.
- Family Business Succession Planning Generally. The Estate Planning for Family Business Owner coursebook library has several useful offerings addressing family business planning, including succession. Also, Transitions Dynamics, Inc. recommends conducting a pre-administration of the family succession plan, which they refer to as a “fire-drill,” to test whether an adequate succession plan is in place.
- Other Online Resources. John L. Ward, Perpetuating the Family Business, focuses on saving the family business and the family that is in business together. He stresses that basic conflicts between the family system and the business system must be resolved and suggests steps to that end.
- Family Dynamics. Fundamental to estate planning and business entity planning for families in business together is an understanding of the personal dynamics of the family situation. See, G. LeVan, The Survival Guide for Business Families for an internet based resource on the subjective family relationships side of family business planning.
See Donald Kelley, Online Resources for Business Succession Planning, Wealth Management, Aug. 13, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.