As a business owner, you need to plan for your entity’s requirements today and in the future. Naturally, these preparations will include taking actions, such as completing operational tasks, entering into contracts, and managing day-to-day issues. Another part of planning for your Florida business should include having measures in place should something happen to you. So, as a business owner, it’s important to know: Are your affairs in order?
Estate Planning and Your Florida Business
Estate planning is an area that many people forget about or avoid. The problem with these approaches is that if the person becomes incapacitated or dies, their personal and business interest and assets will be placed in an uncertain position. As with personal assets, business interests should be included in your estate plan. Doing so will include taking action to decide what will happen to your business if you are unable to make decisions.
Getting Your Florida Business Affairs in Order
An important part of getting your Florida business affairs in order will be deciding who you want to make decisions on your behalf. As you consider your business needs, you will need to evaluate the type of structure you have and any existing governing instruments. For instance, if you are a partner or a limited liability company (LLC) member, you will most likely have a partnership or operating agreement. These agreements usually include language concerning what will happen if an owner dies or can no longer make decisions for themselves. Ideally, these provisions will be structured in a way that will work in conjunction with the individual’s estate planning documents. Your estate planning documents may include devices such as a will, a trust, and financial power of attorney.
Planning for Your Business Interest
As you develop your governing documents for your Florida business, you should consider who you would want to step into your decision-making role if you were to become incapacitated. Likewise, you will also want to consider who you want to inherit your interest in the enterprise.
Considering Co-ownership Interests
You will also want to know what your partner or co-owners plan to do if they become incapacitated or pass away. It’s important to think about whether you would be comfortable co-owning or operating a business with the other party’s heirs. If the answer is no, you and the other interested party or parties may need to discuss your concerns. On the other hand, if you plan to continue co-ownership with your former co-owner’s heirs, you will need to discuss how your agreement and other governing documents will be impacted. In all likelihood, you will need to update your business plan and other important instruments to reflect the change and your current circumstances.
Being Prepared for the Future of Your Florida Business
Having your business plans in order is vital to the success of your enterprise and its future well-being and viability. The best way to assess your current circumstances and determine how best to prepare for possible changes is by consulting with an experienced Florida business attorney. Your business lawyer can help you evaluate your entity and identify the steps you need to take to protect your interests today and going forward.
Contact an Experienced Florida Business Lawyer
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with commercial leasing, business, and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.