At some point, you will no longer be at the helm of your business, either because you retire, sell your interest, or because of your death. Planning for that eventuality is imperative to ensure that you, or your loved ones, do not lose the value of all your hard work up to that point. Precisely when you should start thinking about transitioning ownership of the business depends, to a great extent, on whether you plan to pass it down to the next generation, sell your interest to a partner, or sell to a third party. If you plan to pass the business down to the next generation it is never too soon to get started. On the other hand, if the business is to be sold upon your death or incapacity, you should be planning for that now to ensure that your loved ones receive the fair market value of your interest in the business when the time comes to sell it, but you will not actually start transitioning ownership now.
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