Jul 7, 2015

Protecting Your Sole Proprietor Estate Assets

You’ve worked long and hard to build your business. You have a great reputation, strong cash flow, a solid asset base, and reliable employees. You operate “lean and mean” as a sole proprietorship. You may be a car mechanic, consultant, plumber, eBayer, building contractor, landscaper, professional or other entrepreneur.

Then you die unexpectedly without an up-to date will or succession plan. What happens to your business?

In most cases, the business will fall apart, for a variety of reasons. The law recognizes no difference between a sole proprietors business and personal assets. When the owner dies, accounts are frozen. No one is permitted to sign checks or distribute funds, sell retail inventory, or create liabilities (payroll, etc. for completing in-progress jobs, for example). Even if an office manager or payables clerk has the authority to sign checks, he/she is not allowed to do so when the proprietor dies. >>> Read More

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