Tampa Estate Planning For Small Business Owners
Being your own boss and operating a small business offers many benefits, but also carries heavy responsibilities. Planning for the future and any unexpected situations that may arise plays a crucial role in your success. Our Tampa estate planning attorney explains some of the documents small business owners need to have in place.
Planning For The Unexpected
Life is unpredictable. Estate planning helps to protect you in case of unexpected events. Everyone should have a will and other important estate planning documents in place, but it is particularly important for small business owners.
Even if you own a small niche business and are the only employee, you still generate revenue. You may also have business tools or supplies, marketing materials, merchandise, vendors you deal with regularly, and a loyal client list. In the event you become seriously sick or injured, it is important to have a plan in place. Documents needed include:
- Power of attorney: This designates someone you trust to make important decisions on your behalf in the event you are incapacitated. When selecting the person for this role, be sure and make your wishes known.
- Advance directives: These convey your wishes regarding emergency and potential end-of-life care. Knowing what you want and having it in writing makes a difficult time a little easier for your family.
- A will: In the event of your death, your will acts as a guide through Hillsborough County Probate Court proceedings. It details your final wishes, designates beneficiaries and determines how your property, including your small business, is divided among them.
- A trust: Similarly to a will, this designates beneficiaries and determines their rights to property. However, it allows for more detailed distributions, such as for ongoing expenses related to your business.
Other Considerations When Creating An Estate Plan For Small Business Owners
The Florida Department of State offers a guide for small business owners that includes how to form, register, and license your business. The choices you make in this regard will depend on the size of your business, the industry you are in, potential tax benefits, and other factors.
Once business formation is addressed, a succession plan is another important consideration. This details what happens to your business in the event of death or permanent incapacity. Options you may wish to consider include:
- Passing your share of the business to other business partners;
- Passing it on to family members or other loved ones;
- Closing the business and distributing any remaining assets;
- Selling the business to someone else and determining who profits from the sale.
Discuss Your Options With Our Tampa Estate Planning Attorney
As a small business owner, it is important to take the time to put estate planning documents in place. At Strategic Counsel Law Group, L.C., we have decades of experience serving the local business community. Our Tampa estate planning attorney provides trusted legal guidance, explaining the options available and ensuring your best interests are protected. To request a consultation, call or contact our office online today.
Sources:
hillsclerk.com/court-services/probate-guardianship-and-trust
dos.fl.gov/library-archives/business/
