Business Succession Planning for Tyler Business Owners

For many East Texas owners, the business is their largest asset and their family’s main source of income. Yet most have no written plan for what happens if they retire, become disabled or pass away. Without one, a business can lose value quickly.

Decide Who Takes Over

Your successor might be a family member, a key employee, a co-owner or an outside buyer. Each path requires different preparation, and the earlier you start, the more options you have.

Put a Buy-Sell Agreement in Place

A buy-sell agreement sets out what happens to an owner’s interest on death, disability, divorce, retirement or departure. It establishes who can buy, how the price is set and how it will be paid. Life insurance is often used to fund a buyout so the remaining owners can pay the family fairly. Read what an LLC company agreement should include for related terms.

Plan for Incapacity

If you cannot run the business for a period of time, who has authority to sign checks and contracts? A durable power of attorney and clear internal authority can keep operations running.

Coordinate With Your Estate Plan

Your will or trust should address your ownership interest. A trust can help transfer the business without interruption. Your CPA and financial advisor should be part of the conversation to manage taxes.

Selling to a Family Member or Employees

Lindsey Birdsong has represented owners in selling a business to a family member and in sales to outside buyers. Seller financing and gradual transitions can work well, but they need clear terms. See buying or selling a business in Tyler.

Frequently Asked Questions

When should I start succession planning?

Ideally years before you plan to leave, but any time is better than none. A basic buy-sell agreement and estate plan can be put in place now and refined later.

What happens to my LLC interest when I die?

It depends on your company agreement and estate plan. Without planning, your heirs may inherit an interest with limited rights or face a forced sale.

Talk With a Tyler Attorney

Planning for the future of your business? Learn about our estate planning and probate services. Call Lindsey Birdsong, PC at (903) 595‑6297 or visit our contact page. Our office is at 2307 Dueling Oaks Drive, Suite 103, in Tyler.

This article is general information, not legal advice. Talk with an attorney about your specific situation.