--- title: Our Best Entrepreneurial Tips for Dealing with Founder Equity in Estate Planning description: Estate planning is a unique challenge for business owners. An entrepreneur’s investment in a business is as much emotional as it is equity. image: https://blog.goosmannlaw.com/hubfs/Blog_Images/FounderEquity.jpg --- [![Goosman Lawfirm](https://blog.goosmannlaw.com/hs-fs/hubfs/Goosmannlaw%20October2017/images/Goosmann_Law_Firm_logo_4C-white.png?width=1250&name=Goosmann_Law_Firm_logo_4C-white.png "Goosman Lawfirm")](http://goosmannlaw.com/) - [COVID-19 Toolbox](https://goosmannlaw.com/covid-19-resource-toolbox/) - Our Team - [Attorneys](https://goosmannlaw.com/attorneys/) - [Non-Attorney Staff](https://http://goosmannlaw.com/non-attorney-staff/) - Practices & Industries - [Practices](https://goosmannlaw.com/practices/) - [Banking & Finance](https://goosmannlaw.com/banking-finance/) - [Bankruptcy, Restructuring & Workouts](https://goosmannlaw.com/bankruptcy-restructuring-workouts/) - [Business](https://goosmannlaw.com/business/) - [Divorce & Family Law](https://goosmannlaw.com/divorce-family-law/) - [Employment](https://goosmannlaw.com/employment-law/) - 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As you seek to step away from the business, it is essential you outline your goals and plans for the business. Every business is unique, and this is especially true of closely-held and family owned businesses. Goals will vary from one business to the next.  For some individuals the most important thing will be passing on the business to the next generation.  For others, their business is their retirement.  They have spent a lifetime building the business up, and now need that equity to take care of them through retirement. 2. If you are planning to pass the business on to your children, you need to take the time to set up a business succession plan. At its most basic, this means identifying the best individual or individuals to run the business and preparing them for the transition. Many owners simply default to passing the business onto their children equally, hoping the children will get along. They usually don’t. The equity you built up is quickly lost in the next generation.  With some careful planning you can improve the businesses longevity by carefully selecting its leader in the next generation while also making all of children share in its growth and profitability. 3. Are you still going to be involved in the business after its transition? It will be necessary to determine your role as you go forward. Some owners like to step away completely. Others like to remain as a consultant or advisor, which can be an excellent way of maintaining a stream of income and a return on investment while providing guidance to the next group of owners. 4. If you are one of multiple owners, you need a buy-sell agreement in place to protect your investment in the business. If you ever end up at odds with your partners, you might find yourself frozen out of dividends or, more likely, income. And, when you seek to leave the business, you may only receive a fraction of your interest’s worth. A buy-sell agreement will help preserve your equity and family. While ensuring your business is passed on to them at its fair value.  If you or anyone you know has a question or concern about founder equity in estate planning contact [Goosmann Law Firm](http://goosmannlaw.com/) [here](http://goosmannlaw.com/contact/).  --- ### Are you actively selling your business? Have you been given an offer that you (almost) can’t refuse? Knowing what your company is truly worth is an important part of being a business owner, and [Goosmann Law Firm ](http://goosmannlaw.com/)is here to help make sure you are prepared for every possibility. Our FREE EBITDA calculator not only determines the Earnings Before Interest, Taxes, Depreciation and Amortization of a company, but it also breaks out your net profit, benefits, add-backs, and so much more. You know how valuable your business is to you. Now it’s time to see how valuable it will be to those who may want to buy it. 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