The Proper Legal Structure for Your Business in Nassau County, Suffolk County, and New York City, NY
Our business planning attorneys can provide guidance on the best business structure to create for your business and can assist in the legal establishment of your business entity, such as a Limited Liability Company or a Subchapter S Corporation. We can also assist in drafting the appropriate operating agreement for your company and coordinate with your accountant on tax matters.
Our experienced business planning attorneys can help you eliminate the risk by forming Limited Liability Companies (LLCs). If your company faces debts or liabilities, the LLC business structure protects you from being personally liable.
The Importance of Business Succession Planning in Nassau County, Suffolk County, and New York City, NY
In a recent study, an alarming statistic was given only about 30% of all New York family businesses successfully transition to the second generation, and only 12% are still viable in the third generation.
So much time, money, and effort goes into building a successful New York family business. You should ensure proper business planning is in place so it will continue to thrive even after you’re no longer able to run it.
If no plan is in place, the business formation is passed down to the successors of the estate, acquired by other shareholders, or a combination of the two in Nassau, Suffolk, and surrounding New York counties.
New York Business Planning for a Family-Owned Business
A family-owned business in New York may cause an uproar between siblings and other relatives or between those more active in daily operations versus those less involved if they receive an equal or greater share.
If employees and clients of a corporation catch wind of the arguing, they may threaten to leave the company for fear of instability. If an ill-equipped person attends meetings between shareholders and they don’t agree with business proceedings, it can delay production, potentially leading to business loss.
With a plan, the New York business entity will pass according to your wishes. Typically, New York succession planning involves either retention or buy-sell retention, but we can help tailor it to comply with your wishes.
Understanding Business Retention Planning in New York
Retention planning keeps the business or shares within the family. With a retention plan, a spouse, children, or other relatives retain control of assets in New York and surrounding areas.
Buy-Sell Retention planning gives current shareholders or vital employees an opportunity to take a larger stake in the company. A fair valuation of shares is determined and agreed on by the business owner, then offered to the shareholders.
Don’t leave your New York business without a future. By planning ahead, you can determine procedures to follow and appoint a competent successor to carry out your goals for your business into the future.
Russo Law Group, P.C. helps you and your loved ones handle Estate Planning, Elder Law, Special Needs Planning, New York Medicaid Planning, Trust & Estate, Guardianship, Small Business Planning, and Real Estate law. We welcome you to contact our Garden City, Lido Beach, or Islandia, New York, law offices to learn more about how we can help address your business succession planning legal matters.
If you have questions or concerns about business succession planning in Long Island and New York City communities, please don’t hesitate to contact the business attorneys with Russo Law Group, P.C. While we have several office locations, we can also visit your home and offer virtual meetings for convenience.