Most business owners I speak with don’t have a plan for what will happen to their business if they are incapacitated or pass on. They have a general idea of who they want their business to go to, but not how the business will get to that person or people.
There are numerous ways to pass on or sell a business, and the earlier one begins planning, the better the chance of success and the cheaper it will be. For example, if you are passing your business to a loved one, it may be better to start giving portions of the business via tax-free gifting long before you pass to avoid tax penalties later on. I’ll get into a few more examples later, just know that there are many ways to decrease the cost in both a sale and passing on of a business, and the earlier you do so, the easier it will be in the long run.