As older business owners begin to retire in increasing numbers, creating a succession plan is essential. 

When the current owner of a small business decides to retire, they are faced with the decision to sell their company, close it, or something in between. Courtney Kincaid, President and CEO of the Indiana CPA Society, says succession planning is “Just a great idea to have something in place.” Despite this, many small business owners do not have a plan and are caught off guard when they decide to retire. 

When considering new ownership for your business, Kincaid said it is important to closely examine who will be taking over and ensure they are a good cultural fit for your business and staff. 

Kincaid says one of the smartest things you can do is speak with your CPA. She says many CPAs specialize in succession planning and can help you formalize new ownership plans and prepare your business for the next step.   

In addition, Kincaid says there can be many tax implications during a new ownership transition, and it is important to work with your CPA throughout the process.

More than anything, Kincaid says the first and most important step is having a plan in place.