How to retire from your own company

On Behalf of | Feb 24, 2021 | Business Law

There comes a point in almost everyone’s life when they start to contemplate retirement. However, if you run your own California business, it may be difficult to simply leave your position as the company’s top executive. Of course, there are still ways that you can cede authority to others and walk away from your job when the time is right.

What does your succession plan look like?

Ideally, a succession plan will be included as part of your original business plan. Having such a document can help you identify key employees who may be suited to take over as future leaders of the company. It can also help you develop a timeline as to when these people will assume your duties and rank within the organization. Finally, it can help you determine whether the firm will be sold at once or over a period of time.

Are any internal candidates capable of running the business?

There is a chance that no one currently working for the company is capable of running the business. If you run a private practice, there may not be anyone currently working for you who is legally able to acquire it. Therefore, your options are to shut the business down or sell it to an outside party. A business law attorney may be able to assist in the process of selling your company to an outside party.

How to properly shutter your company

If you run your company as a corporate entity, you’ll likely need to notify the state that it is going to cease operations. It’s also a good idea to determine if you’ll need to pay franchise fees, state taxes or other costs in the year that you closed your firm. Conversely, if you ran the business as a sole proprietor, you can pretty much walk away from it without the need to tell anyone.