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How can Maryland small business owners transfer businesses to their children?

 

A:

        Many Maryland family businesses struggle with the question of transferring ownership or control of the business to children. The Small Business Administration (SBA) estimates that only a third of all businesses are successfully transferred from one family member to another. But the SBA also estimates that family businesses make up almost 90 percent of all business in the United States and pay a large portion of American wages, so their contributions add a lot to the American pocketbook.

        Maryland family businesses face at least four hurdles to successful transfer of control of the business: lack of planning, unwillingness on the part of the owner to transfer control, unwillingness on the part of the child to manage the business and dwindling prospects for the business. Unless these hurdles can be overcome, the odds are against successful transfer of control within the family.

       Experts advise that for a Maryland small business owner to successfully transfer a business to children or other family members, the owner must carefully consider the following: strategic planning for the business, knowledge of the family and its members' strengths and weaknesses, choosing a successor and willingness to make succession work. Through careful succession planning, a business owner can successfully transfer control and ownership to the next generation. An experienced business attorney can assist a business owner desiring to transfer the business to the next generation.




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The Kramer Law Firm LLC represents small business clients throughout Washington, D.C. and Montgomery and Prince George's Counties in Maryland, including the communities of Bethesda, Bowie, Chevy Chase, Gaithersburg, Germantown, Laurel, Potomac, Rockville and Silver Spring and all of the surrounding areas.

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