Maryland business owners may not think they need to consider what they will do when they are ready to retire or leave their company because it is far in the future, but all business owners need to have an exit plan in mind. Failing to plan can mean scrambling at the last minute to sell the company and only being able to do so for less than it is worth. For business owners who hope to leave their company to a family member, it is advisable to put documentation in place to smooth the transition.
A living trust can be an excellent way to protect the assets of a small business for heirs. Property, copyrights and patents can all be placed in a living trust, and if the company operates in more than one state, a living trust means heirs will not have to go through probate in those states. However, owners should keep in mind that some types of businesses may be more difficult to place in this type of trust. For example, a majority of its owners must agree to put an LLC into a living trust.