As a business owner, you’ve persevered through the ups and downs and laid a foundation through hard work and self-discipline. However, there’s another role you play, and it’s one that’s far more important than anything that might occur during the fiscal year. As the head of your family, you’ve always strived to provide them with the very best and look after their best interests. Now the time has come to pass the torch to them so they can provide for future generations. Transferring ownership of your business is a common practice, and planning to do so takes some careful consideration.
Establishing a Good Contract
No matter who you might be transferring ownership duties to, it’s essential to have it put in writing. This way, there’s complete transparency between all of the parties involved. Ensuring everything is thorough before finalizing is essential, and seeking legal advice is always recommended.
If you’re deciding to sell your business to a family member instead of transferring ownership outright, you might want to look closely at the various financing options. Many people decide to establish a private annuity. This spreads out the payments over a period of years, which allows for a steady stream of income to you after the sale is finalized.
Maintaining a Level of Control
Whether you’re transferring ownership or selling, one thing to take into consideration is whether or not you want to maintain control or not. There’s nothing wrong with having oversight of the business and transferring the reigns of power to another party. As with everything else, it’s essential to have this put into writing, and notarized to keep it legally binding.
Accuracy and Observing the Letter of the Law
While you might have good intentions by keeping businesses within the family unit, there’s a lengthy history of unethical practices that have come out of families transferring ownership among one another. One of the best things you can do is have any and all paperwork looked at by a legal representative to ensure accuracy and legality. The laws are constantly changing, and legitimacy should be a primary concern.
Hallmark Business Brokers
There’s a lot to be concerned with regarding the transfer of ownership. Hallmark Business Brokers has helped millions out during the selling process, and we’re more than happy to assist you. For more information, visit our website or give us a call at 941-445-4726.