Successful family businesses do not just happen. The Colorado business person spends time planning, analyzing and working to make the business successful. In addition to wanting the business to be successful now, he or she often looks to the future and the legacy that will remain once he or she is gone. The best way to do this is through careful estate planning that includes plans for the family business.
One of the first things that the business owner will want to consider is whether the business should remain operational or should be sold prior to or upon the death of the owner. If the business is to continue, he or she will want to evaluate the interest and capabilities of those family members, or others, who will inherit it. Additionally, it may be necessary to consider if a portion of the business should be left to a family member not interested in actively participating in the business.
Then, if the business is partially owned by someone outside of the family, there are other items that must be considered. Does the business agreement contain a buy-sell agreement? Will family members inheriting a portion of the business be capable of fulfilling their duties to the company and working as a part of the team? These are all important considerations.
Perhaps one of the most difficult parts of this process is making the actual decision regarding what should be done. Unfortunately, if this decision is not made, the business and family may both suffer. In order to protect both business and family, the Colorado business owner will want to include the family business as a part of his or her estate planning.