If you own a small business in Greensburg, you likely have put a lot of thought into how to create and run your operation. However, one thing you should not neglect is planning what happens to your business if you should suddenly pass away. As Entreupenuer.com explains, it is important to compose a last will and testament early on before the unexpected occurs. While there are many important reasons for entrepreneurs to have a will ready, here are three important reasons any business owner should consider.
First, there are many business owners that have a large portion of their personal wealth in their business. So if the owner dies and the business retains no connection to the owner’s family, the survivors will suddenly have no access to that wealth. Composing a will can ensure that a family member ends up with the business, or if the owner does not find a relative that can handle the job, the owner can require the business to be sold and the family to receive a share of the sale.
Secondly, if the owner intends to not name an heir and close down the business, it is important that this fact be documented. Some companies do become worthless after their owners pass away, but there is still the chance that the company’s value could be hit with an estate tax if the company is deemed to have had value before the owner died. To keep surviving relatives from having to pay an estate tax, the business owner should document the limited value of the business, including the inability of the business to be transferred to another owner.
Third, per business.com, composing a will means you name who gets access to the intellectual property, assets, social media accounts and bank accounts that make up your business. It is crucial that you name someone you can trust to take control over and distribute the assets of your business as you see fit. However, be careful not to put sensitive information in the will itself. Since a will is a public document, you should create a separate list of social media accounts and passwords, anything intended for your executor’s eyes only.