Business Planning
The firm helps create and implement an effective business continuity plan to preserve the wealth and success of a business for the future.
Starting a Business
If you are starting a new business, the attorneys at Resch and Root can help you with all of the essential considerations, including which type of entity to utilize, the completion and filing of the Articles of Incorporation, Organization, or Partnership with the Secretary of State, obtaining a federal tax ID number from the IRS, drafting of your governing document, and implementing your annual record keeping system.
To determine which type of entity is best suited to your specific needs and goals, the attorneys at Resch and Root will engage in a comparison of the following types of entities and the advantages of each:
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Limited Liability Company (“LLC”)
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C-Corporation
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S-Corporation
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General Partnership
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Limited Partnership
Please contact our office for a personalized business formation analysis.
Business Succession Planning
Business succession planning is designed to keep a family or closely-held business ongoing upon the deaths or disabilities of its founders and/or leaders.
Closely held businesses face many problems when owners die, become disabled, or resign. These problems can arise when the business is entirely held by family members and also when the business is held among unrelated individuals.
Planning Concerns
The primary planning concerns for all business owners, particularly those who are nonrelated owners of the same business, are:
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Ensuring a market to purchase their stock or other business interest at retirement, death, and substantial disability;
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Providing funds for the purchase of the business interests of all of the owners;
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Keeping “unwanted partners” such as competitors or nonessential family members from becoming business partners
Business Transfer Strategies
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Buy-sell agreements - A buy-sell agreement can address how a business should proceed in the event a business owner passes away. A common fact pattern where a buy-sell agreement is useful is the following:
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“I own a business with another person and understand that we should have an agreement providing that if one of us dies, the other will purchase the interest of the deceased owner. Also, I understand that we should probably have life insurance to pay for the buyout. Both of us want to maximize the amount that we receive from our business, and, most importantly, we want to maximize the amount our children actually receive.”
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Stock Redemption Agreements - A stock redemption agreement is made between the individual shareholders and the corporation. The individual shareholders agree that upon the occurrence of a triggering event such as the death of a shareholder, they are obligated to offer their respective stock ownership for sale to the corporation.
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Sale to Family Members - There are a number of planning options available for the sale of business interests to a family member. Options include using an installment sale, a self-cancelling installment note, and selling the business in exchange for a private annuity.
The attorneys at Resch and Root help clients understand the significance of effective business continuity planning. Recognizing that each business has unique business objectives as well as personal goals regarding the business assets, the attorneys at Resch and Root advise you on options that are suitable to your specific needs.
To discuss your specific needs, call 1-614-760-1801