While you may understand that proper business succession is essential to the success of your Ohio-based company, you may not know all your options for transferring ownership. This gap of knowledge could hobble your business planning efforts.

Fit Small Business breaks down several ways to transfer ownership of your company. See which is the most favorable fit for you and your organization.

Transferring to an heir

If you have an adult child or another relative working alongside you, you may want to leave your company to this individual. If you like this option, you must leave the person and your company thorough instructions on who you want to leave your business to and how you want to compensate your other beneficiaries. You may also want to include a buy-sell agreement for heirs who may want to sell their share of the company.

Selling to a co-owner

If you feel that your heirs are not up to the task of succession, you may want to sell your organization to a co-owner. You may already have a partnership agreement in place that allows co-owners to purchase your shares of the company from your next of kin if you die or become disabled. With this option, your co-owners must always have the necessary liquid capital on hand to purchase all your shares, which they can accomplish with a term life insurance policy.

Selling to an essential employee

Experienced, committed and entrepreneurial key employees may wish to inherit your business. You may prefer this succession option if you feel wary about selling your company to an outside buyer or if you do not have a co-owner or family member whom you trust to operate your business. This is another succession option that requires the successor to buy your organization.

Take your time when deciding your business successor. This is a decision that you make for yourself, your business and your employees.