What Every Maryland Business Owner Should Know About Succession Planning

By Kaitlyn P. Tauber, Esq., Liberty Legacy Law Group

You’ve worked hard to build your business — the long nights, the risks, the sacrifices. But what happens when it’s time to step away?

Whether you’re retiring, selling, or simply planning ahead, succession planning is how you make sure your business continues to thrive after you’re no longer at the helm.

Most Maryland business owners know they should have a plan. Few actually do. And waiting too long can put everything you’ve built — your employees, your family income, your legacy — at risk.

Let’s talk about what a good business succession plan includes, and why you need one sooner than you think.

Why Succession Planning Matters

If you don’t decide what happens to your business, someone else — a court, the IRS, or your heirs — will.

Without a succession plan, your business could face:

• Leadership confusion if you suddenly become unable to manage operations
• Disruption to employees and clients
• Forced sales or closures during probate
• Family disagreements about ownership or control
• Tax consequences that could drain your business’s value

A succession plan is about continuity. It’s about ensuring that your hard work continues to provide for your family and employees — no matter what happens.

Who Needs a Succession Plan?

You don’t have to be running a big corporation to need a plan.

In fact, small business owners, family-run companies, and professional practices have the most to lose without one.

If your name, relationships, or expertise drive your business, your absence could create an immediate crisis.

That’s why we often say:

Every Maryland business with an owner should also have a plan for the next owner.

Key Elements of a Maryland Business Succession Plan

A strong plan typically includes:

1. Ownership Transfer Strategy
   Decide who will own the business — a partner, a child, a key employee, or an outside buyer.
2. Management Continuity
   Identify who will run the company day to day if you’re gone or unable to work.
3. Buy-Sell Agreements
   These legal contracts spell out how ownership interests are valued and transferred if an owner dies, retires, or becomes disabled.
4. Tax Planning
   Work with professionals to minimize capital gains, estate taxes, and transfer costs.
5. Funding Mechanisms
   Use insurance, savings, or financing to make transitions smooth and affordable.
6. Legal and Estate Integration
   Your business plan should coordinate with your personal estate plan — especially if family members inherit or manage part of your company.

Common Mistakes Maryland Business Owners Make

Even experienced entrepreneurs make these errors:

• Waiting until retirement to plan
• Failing to document verbal promises
• Assuming family will “figure it out”
• Ignoring the impact of death or disability
• Not updating agreements as the business grows

A good succession plan is a living document. It should evolve with your business, your team, and your goals.

How Liberty Legacy Law Group Helps Business Owners

At Liberty Legacy Law Group, we help Maryland business owners protect their companies and their families.

We work closely with you to:

• Identify your long-term goals and ideal successors
• Draft or update operating agreements and buy-sell provisions
• Align your business structure with your estate plan
• Coordinate with accountants and financial advisors
• Protect your legacy while minimizing legal and tax risks

We don’t believe in one-size-fits-all plans — because your business isn’t like anyone else’s.

Final Thoughts

You built your business with care, vision, and grit. Don’t let uncertainty undo that hard work.

A succession plan is more than paperwork — it’s a promise to your employees, your family, and your future.

At Liberty Legacy Law Group, we help Maryland business owners create plans that protect their people, their profits, and their purpose.

Because a strong business doesn’t end when you do — it continues with a plan.