What documents are in a typical business succession plan ?
Generally, a comprehensive business succession plan will involve (i) the By-laws of a corporation, Operating Agreement of an LLC or Partnership Agreement of a partnership, which will establish the ground rules of the day-to-day management of the business and the identity of permissible owners of the business, (ii) the Shareholders’ Agreement of a corporation or Members’ Agreement of an LLC, which will address the ownership of the business in the event of the disability or death of an owner (these provisions will appear in the Partnership Agreement for a partnership) and (iii) the estate planning documents of the individual owners of the business, which will manage the business interest, or proceeds from the sale of business interest, upon the death of the owner.
