Every Business Will Change Hands—The Only Question Is How
Whether you run a family business, a growing LLC, or a solo operation, your business will eventually face a major change. Maybe you retire. Perhaps you pass away unexpectedly. Or one of your partners might want out.
Without a clear plan, these transitions can lead to confusion, legal disputes, and significant losses. In many cases, operations stall and business value disappears overnight.
If you own a Utah business, now is the time to prepare—not when you’re already out of options.
What Is Business Succession Planning?
Succession planning means deciding in advance how your business will continue when leadership or ownership changes. It creates a legal and financial roadmap to guide the transition.
A solid plan answers key questions:
- Who takes over if something happens to you?
- How will the business be valued and transferred?
- What happens to your share of the business?
- How do operations continue without interruption?
To accomplish this, most succession plans include:
- Buy-sell agreements
- Operating agreement updates
- Key-person insurance
- Wills or living trusts
- Training and transition protocols
Why Succession Planning Matters
Many strong Utah businesses collapse when an owner exits—not because the business is flawed, but because no one knows what to do next.
You might be fine today, but the following events can trigger major disruption:
- The unexpected death or disability of an owner
- A divorce, lawsuit, or bankruptcy
- Partner disputes about ownership or direction
- Unclear or outdated documents
With a plan in place, you protect the business and everyone depending on it.
Tools Every Utah Business Owner Should Consider
1. Buy-Sell Agreement
This contract outlines what happens when a business owner leaves, becomes disabled, or passes away. It covers:
- Who is allowed to buy the exiting owner’s share
- How to calculate the value
- How the purchase will be funded
If you don’t have one, the exit becomes a fight—often in court.
2. Operating Agreement Provisions
For LLCs, the operating agreement controls how ownership transfers and who makes decisions. It should reflect your business today—not a boilerplate form from five years ago.
For a deeper breakdown, read:
Do I Need an Operating Agreement for My Utah LLC?
3. Estate Plan Integration
Your business interests should align with your will, trust, and any insurance policies. If not, your family or partners could face conflicting instructions—or no guidance at all.
Coordination across documents is critical for smooth transitions.
Ask These Questions Before It’s Too Late
Many business owners wait too long. Start by asking:
- If I’m not available tomorrow, who can legally access the business accounts?
- Do my co-owners or family members know what to do?
- Is there a plan in place to buy or transfer my share?
- Would the business survive if I stepped away?
If you’re unsure, you’re not alone—but that’s exactly why you need a plan.
Final Thoughts
Succession planning isn’t just about retirement. It’s about protecting your investment, keeping the business running, and avoiding messy disputes.
The earlier you start, the more control and options you keep. Waiting too long only increases the risk of confusion and conflict.
If you want help building a practical, legally enforceable succession plan, Duckworth Legal Group is here to help.
Call (801) 882-7444 or email info@duckworthlegalgroup.com to protect your business, your family, and your legacy—before it’s too late.