Is Your Business Ownership Aligned with Your Estate Plan?
- Marketing Director
- Dec 31, 2025
- 2 min read
Updated: Jan 5
If you own a company, such as a Limited Liability Company (LLC) or a Partnership, it is crucial to ensure that your ownership interests are properly coordinated with your estate plan. Without proper planning, your business could face unintended consequences for your business and your heirs, like unnecessary delays, tax burdens, or even dissolution.
To avoid these issues, consider the following steps:
Review Your Operating Agreement or Partnership Agreement: Ensure that these documents include provisions for the transfer of ownership upon your death or incapacity. Your ownership interest is legally distinct from your ability to run the company.
Establish a Management Plan: Clearly outline who will manage the business, and that they have the capacity to do it, like control of the money, hiring employees, and completing the work. This can also be in your operating agreement, designating a successor manager.
Consider Tax Implications: Proper planning can help minimize estate and income taxes for your heirs. You should check with your tax professional to make sure you’re avoiding unintended consequences.
Don’t have an operating agreement? YOU NEED ONE, and fast. (Hint – it’s not the Articles of Incorporation you filed when you registered)
Your company, and your legacy, depend on having an efficient transfer of both your ownership interest and your ability to manage and run the business. Employees, contractors, and suppliers all need to be promptly paid. If your successors don’t have the ability to quickly step in and keep things moving, your customers won’t wait around for a probate court to give orders, and the value of your company will plummet. And if your family has to litigate just to have the legal authority to transfer ownership, it can cost everyone, a lot.
Ohio law provides various tools to help business owners protect their interests and ensure a seamless transition. By taking proactive steps now, you can safeguard your business and provide peace of mind for your loved ones.
If you have questions about how to align your business ownership with your estate plan, we are here to help. Contact our office to schedule a consultation and ensure your plans are in order.
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