Succession Planning

Corporations and other business organizations are legal creations. While they are "legal persons," they have no corporal being, and because of this, have potentially an infinite life span. This is not true of the humans who people a business.

This is why it is essential to have a sophisticated, comprehensive succession plan for your business, ideally created when the business is formed and updated periodically. Our attorneys at Cowden & Humphrey Co. LPA can help you with such a plan.

Corporal Not Corporate

We all must face the inevitability of our own passing. But we can create a business that will outlive our own existence. To do this, you must have a plan in place that will permit your business to cope with both the passing of founders, but also the more mundane changes in personnel that occur with any business.

Not Just Mortality

Robust succession planning should encompass much more than just retirement or death. If you are young and forming a new startup, concerns of you or your partners demise might seem unwarranted and so distant as to be not worth wasting time with, given all of the other, more immediate concerns you must deal with.

But a succession plan is designed to handle a diverse array of potential situations. A partner or founder may become ill and need to transfer ownership. There are always completely unforeseen events, like a car accident, recreational injuries and death. While not probable, they are possible and the death or incapacity of a key partner or manager in a small business can be debilitating or catastrophic.

Divorce, Incapacity And Other Issues

Other issues can arise from issues involving divorce, drug addiction, psychological issues or mental illness. Unpleasant scenarios abound where an ex-spouse is suddenly a 'partner' in the business or where a co-owner has burned through significant cash of the business due to substance abuse or addiction.

With a well-constructed succession plan already in place, removing them from the business may be possible; without one, it can prove overwhelming in terms of expense and distraction to the remaining team.

Contact Our Firm

We serve clients throughout Ohio and nationwide. To discuss your succession planning with one of our lawyers, call our Cleveland office at 216-241-2880.