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It is never too late for business owners to start exit planning

Ohio business owners may be interested in an article looking at some timetables for exiting out of the business. For those who wish to retire or sell their companies, planning is an important step in the process, and it is advisable to start sooner rather than later.

Exit planning for business owners involves a few different aspects, including tax considerations and dealing with succession issues. Depending on the amount of time that a person has left in the business, the options for exit planning can be slightly different. However, no amount of time is too small to start on this important step toward selling the business.

For those who have some time before they plan to leave, two major considerations should be made. The tax benefits of changing to a Sub-S corporation can be maximized if left in place for ten years. Also, if the company is a family business, grooming a new family member for leadership cannot be started too early. If the business will not be sold but instead left in the hands of successors, proper retirement planning must be done as well. If there is only a year left before the planned exit, then several things should be done as soon as possible. These could include getting a broker to arrange a sale of the business, instituting an employee stock ownership plan or seeking financing if that is to be part of the exit plan.

Whether the planned exit is one year or a decade away, business owners should have a plan in place for any unforeseen contingencies as well. This can include an unexpected death or incapacity of the business owner. An attorney may be able to help with various aspects of these business planning decisions.

Source: Forbes, "Now Is The Time To Start Your Exit Plan", Steve Parrish, March 10, 2014

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