Starting a small business is an exciting venture, but business owners must also be prepared for the unexpected. This means having a plan in place that will ensure the continuation of their business should something happen to them or another key person involved in the company.
One important way to protect your business is by creating a “business will” –a document that outlines what happens if you become incapacitated or pass away unexpectedly. Here we’ll explore why it’s so important for small business owners to have one and how they can go about setting it up.
A business will is a legal document that outlines the distribution of assets, liabilities, and ownership of a small business in the event of death or incapacity of its owners. It can also help to provide guidance on how the company should be managed in the absence of key individuals, helping to ensure its continued success.
Small businesses are particularly vulnerable when it comes to unexpected events such as disability or death because they lack the resources available to larger companies. Without a plan in place, it could lead to confusion and chaos that could ultimately put the future of the business at risk. Having a comprehensive business will help to protect against this by outlining clear plans for succession and providing clarity on who has decision-making authority over key areas of the company.
Your business will should include information about who owns the company and who has control over its assets and liabilities, who should take over managing operations if you cannot fulfil your responsibilities, who gets which assets when it comes time to distribute them among shareholders or transfer ownership upon death, as well as what procedures need to be followed in order for any changes in ownership or management structure to be legally binding.
Creating a business will involve working with legal professionals who specialise in estate planning and corporate law. They can help you create documents that outline processes for succession planning, shareholder agreements, asset distributions, tax implications, debt obligations, and more. It’s important to consult with trusted advisors when creating your business will so that all parties involved have an understanding of their rights and responsibilities going forward.
Once your business will is established, it’s essential to keep it up-to-date so that everything remains valid if something were to happen suddenly. This means revisiting your documents regularly (preferably once per year) to reflect any changes such as new laws or regulations, personnel changes within the company or ownership transfers due to marriage/divorce/death etc., updating contact information for key personnel related to decision making within the company such as lawyers or financial advisors; as well as changing tax rates due to inflation etc…
It’s important not just to update any necessary changes but also to review all information included in your initial document annually just in case something may have been overlooked previously.
Business wills can be very complicated, which is why it’s important to work with experienced advisors who understand the legal and financial implications of such an important document. At Zivillo, we specialise in comparing will providers and can help you find the best one for your particular situation. Our team of experts can also provide guidance on how to create, maintain and update your business will so that it’s always up-to-date and valid. Get in touch today to find out more about how we can help you protect your small business and ensure its future success. Receive a free non-obligatory quote in minutes!
Starting a small business involves much more than setting up a shop – it requires careful thought and preparation for potential surprises along the way. Creating a comprehensive yet easy-to-understand “business will” helps small businesses stay ahead of such surprises by providing clarity on how decisions would be made if something were ever to happen unexpectedly, ensuring that your hard work doesn’t go unrecognised due to unforeseen circumstances outside of anyone’s control.