In preparation for my participation on the Flourishing Financially panel at the South Metro Chamber of Commerce’s Women in Leadership Annual Conference, I thought I would discuss a question that many small business owners fail to consider when starting their businesses: How do you plan to leave your business?
For some, the answer is that the owner wants to eventually sell the company to someone else. For others, the answer is that the owner wants to pass it down to his or her children. For others, the answer is that the owner wants to go public. Each of these answers, and even the answer that an owner just really doesn’t know right now, has an affect of what type of business entity to use for the business.
Although each instance can’t be discussed in the space that will actually keep my readers’ attention, an example of how this really affects businesses is the instance of going public. In most cases (although a business owner must consult with his or her business attorney to determine the type of entity that is best) if an IPO is eminent, then a corporation will be the entity choice. However, if the business owner never wants to go public, then other entities may also be considered. This is just one example of how the exit strategy of the business owner affects how the business attorney may counsel him or her.
For more information about what type of entity is best for your business, please contact me, your Denver business attorney, at 720-258-6647 or Elizabeth.Lewis@eclewis.com.