We may receive compensation when you click on product links from our partners. For more information, please see our disclosure policy.
Last Updated on January 14, 2025
If your family owns a business, they might have named you the sole successor to the company. At first, the title of an heir may seem pretty sweet, but you’ll quickly realize it comes with its concerns. Without the proper knowledge, you may be out of your depth, and the decision-making may be burdensome, especially with the family business at stake.
If you expect to inherit a company one day, you may start preparing immediately. Whether you plan to run the business or choose a different career path in the future, you might find yourself taking a business course so you’ll make informed decisions. You should also research the company you’ll inherit and the possible bills you’ll have to pay. Also, you could have someone run the business in your stead, or you could consider selling it altogether.
No matter what decisions you make regarding your future inheritance, you should prepare yourself for the expected responsibilities. With the tips in this article, you’ll be able to start planning your course of action regarding the family company.
Inheriting a family business? It’s more than just a title. Learn how to tackle taxes, manage operations, or even prepare to sell. Take control of your legacy and make informed decisions today. #FamilyBusiness Click To TweetWhat This Article Covers
- Understanding the Role of a Successor: Learn about the responsibilities and challenges of inheriting a family business.
- Preparing for Taxes: Discover the importance of understanding inheritance taxes and how to manage tax liabilities effectively.
- Researching the Business: Explore the steps to investigate the company’s history, assets, and revenue for informed decision-making.
- Gaining Knowledge Through Books: Learn how business books can provide valuable insights and strategies for running a successful company.
- Joining Professional Organizations: Learn how networking with entrepreneurs and attending conferences can enhance your business acumen.
- Getting Involved in Business Meetings: Understand why participating in meetings is essential for learning about your company’s operations and finances.
- Considering the Sale of the Business: Evaluate the option of selling the company and the benefits it could bring to your career and lifestyle.
- Hiring a Business Consultant: Discover how a consultant can guide you in managing the company and making sound decisions.
Learn About Taxes
When you inherit a company, you’ll also inherit the taxes that come with it. These tax liabilities will be your burden, so you should learn everything about them beforehand. You don’t want to learn about taxes for the first time when the government already takes money from you.
To avoid this scenario, visit your local IRS office and talk with an employee there about taxes. They will be able to give you some insight into what to expect. Also, ask your accountant or lawyer for help with learning about taxes. And what is inheritance tax? Do you always have to pay? Will you be able to afford it?
Research the Business
Before you take over a business, you should look into its history and the revenue it produces. Learn how the company was formed, who started it, and what assets it has. If you plan to sell the company in the future, research the value of the business and its potential buyers. The more you know about the company, the better prepared you’ll be to make your decisions.
The book Supercharge Your Business with Technology takes you on a journey of understanding of the true benefits of viewing technology as a strategic asset of your business
Read Business Books
If you think you don’t have enough knowledge about running a business, start doing some research. There are many great business books written by experienced business people that can help you become a successful business person yourself. Not only will these books give you insight into how to run a business, but they’ll also help provide examples of how other people have handled similar situations.
Join Professional Organizations for Entrepreneurs
As an entrepreneur, you should join an organization that supports people like you. These groups can provide you with connections and resources that can help your family business succeed. Joining one of these organizations will put you in touch with other successful business owners who can share their experiences.
You may even have the opportunity to attend conferences that will teach you more about running a successful business. These conferences can provide you with great networking opportunities, as well as the chance to hear success stories from different people.
How work should work. Forget the old rules. You can have the best people.
Right now. Right here. Upwork makes it affordable to up your work and take advantage of low transaction rates.
Up your work game, it’s easy. No cost to join, Post a job and hire top talent, Work with the best—without breaking the bank
Get Involved in Business Meetings
If you plan to follow in the footsteps of your family business owner, you should get involved in business meetings. Even if you don’t think you’ll ever take over the business, you should still learn about the company’s financial aspects and decision-making processes. When someone else runs the company, knowing how everything works is essential. To be prepared to take over the company, you should know how it is run.
Consider Selling the Company
If you inherit a company, you might not want to run the business, as there are many other things you might want to do in life. If this is the case, consider selling the company instead of running it yourself.
You could sell it to someone more experienced or to a larger company that wants to expand its market. It will help you get rid of your responsibilities and allow you to pursue another
Easy-to-Use Accounting & Bookkeeping Features. Invoicing and Accounting Tools Built for Any Sized Business
Hire a Business Consultant
A business consultant can help you make sure your company is run correctly. They will guide you through the process of taking over a company and help you make good decisions. They will also assist you with the financial aspects of running a business.
You should try finding a business consultant who has worked with your family business. This way, they will know what the company needs and what it’s currently capable of doing. Alternatively, you can find someone experienced in your specific field.
Final Note
If you’re expecting to inherit a company from your family, there are a few things you should do to prepare yourself. Do some research on the business and learn as much as you can about its history. If you plan to sell the company in the future, be sure to know its exact value and get to know more about potential buyers. For additional help, you can read business books and join professional organizations for entrepreneurs.
If you don’t want to take over the company yourself, consider selling it instead. You should learn about the tax liabilities that come with the business and how to deal with them. If you decide to take over the company, get involved in business meetings, start learning, and write down your goals.
A Pro Shares a Step-by-Step Guide to Creating a Plan that Gets Results by Hal Shelton will open your eyes to insider tips, hints, and techniques for creating a winning business plan.
Next Steps
- Learn About Taxes: Understand inheritance taxes and consult resources like the
IRS Business Section or your accountant for expert advice. - Research the Family Business: Dive into the company’s history, assets, and financial performance.
- Educate Yourself on Business Management: Read essential business books like those on
CareerAlley.com’s book list to gain insights. - Join Professional Organizations: Network with other entrepreneurs by joining groups like the
SCORE Association offers mentorship and resources for business owners. - Consider the Option to Sell: If running the business isn’t for you, research selling strategies on
Inc.com’s Guide to Selling a Business. - Hire a Business Consultant: Work with an experienced consultant to ensure a smooth transition. Find specialized consultants via Consultants Review.
This book is a must-read for entrepreneurs and business leaders looking to launch a successful startup.
