Kang Haggerty NewsThe Corporate Transparency Act (the “CTA”) is a new federal law that became effective on January 1, 2024. Aiming to provide law enforcement with the tools and information to detect, prevent, and punish financial misconduct via business entities, this new law requires certain businesses to report “Beneficial Ownership Information” (or BOI) to the US Department of the Treasury’s Financial Crimes and Enforcement Network (FinCEN). Since failure to comply with these new obligations could bring civil and criminal penalties, it is essential for business owners to be informed of the law and to comply with the CTA’s reporting requirements. Continue reading ›
Articles Posted in Outside General Counsel
5 Tips to Transition Your Business to Next Generation
As a business owner, you want to make sure that your company successfully continues for generations to come. So, when you eventually retire or step down from your position, it is important to consider how you want to proceed with passing on your business to the next generation. Consider the following five tips.
1. Highlight your goals. Do you plan on passing your business down to your family, or do you prefer to transition to a buyer? Figure out your goals behind transitioning your business well before you intend to pass on your business. You should give yourself ample time to prepare for any obstacles along the way.
2. Create a clear strategy. Create a clear exit plan strategy as you move forward with the transition. Always be sure you have this plan set before you start so you do not run into confusion while transitioning. Consider the following to include in your strategy as you prepare:
5 Ways to Transition Your Business to Next Generation
1. Define your goals. What is your ultimate goal in transitioning your business? Do you plan on funding your retirement through this transition? Is it to leave a legacy? The reason behind your desire to transition will determine how you proceed.
2. Plan & Implement Your Strategies. Create a clear plan as you move forward with the transition. Always be sure you have this plan set before you start so you do not run into confusion while transitioning. Consider the following to include in your strategy as you prepare:
a. Financial. If your goal is towards retirement, how will you be funding it? What will be your compensation as you leave the company? Be sure you highlight financial issues clearly and consult with the appropriate experts to make sure these issues are handled well.