Smart Estate Planning for Georgia Business Owners
Estate planning for small business owners in Georgia
You might have a will, but that doesn’t mean your business is protected.
Most Georgia business owners don’t realize that personal estate planning and business succession planning are two very different things. A will can name who inherits your house or your bank account, but it won’t keep your business running, pay your employees, or give anyone access to your company’s finances without a lengthy court process.
You don’t have to run a Fortune 500 business to need a contingency plan. If you own a business, your estate plan should cover how that business will be protected, managed, or passed on. Here’s how to plan for business succession in Georgia and ensure that both your company and your family are well taken care of.
The risks of not having a business estate plan in Georgia
Without an estate plan, your business could be vulnerable to serious disruptions if anything happens to you:
- No clear successor: If you become incapacitated or pass away, who has the legal authority to keep your business running? Ownership disputes can arise between family heirs and business partners.
- Access issues: Who can access your business accounts, payroll systems, or vendor contracts?
- Probate delays: Your business could get tied up in probate, causing major operational or income disruptions.
These challenges aren’t theoretical; they happen every day to small businesses without a plan in place.
How trusts help protect Georgia small business owners
One of the most effective tools for business estate planning is a revocable living trust. This type of trust has several benefits that help protect your small business:
- Avoid probate: Your business interest passes directly to your chosen successor, without waiting on a probate court to make determinations about what happens next.
- Designate a successor trustee: Your successor trustee can manage, run, or wind down the business, according to your wishes.
- Keep business matters private: Probate is a public process, but trusts are not, keeping your business matters out of public scrutiny.
- Plan for incapacity: If you’re alive but unable to make decisions, your trustee can step in and keep operations running as smoothly as possible.
Whether you’re a sole proprietor or managing a multi-member LLC, a trust can help ensure that your business keeps working as intended and supporting your family, even if you aren’t able to run it.
Operating agreements and LLCs in estate planning
Many Georgia business owners already operate through an LLC, S Corporation, or partnership. But don’t mistake business planning for estate planning. Your legal business structure and estate plan must work together to ensure a seamless transition.
Here’s where to start:
- Update your operating agreement: For LLCs and partnerships, an operating agreement should clearly outline what happens if an owner dies, becomes incapacitated, or wants to exit the business. Without this language in place, courts or co-owners may have to make those decisions for you.
- Assign business ownership to your trust: Even if your LLC is active and in good standing, it won’t automatically pass to your heirs without probate. You’ll need to transfer your ownership interest into a revocable living trust or make your trust the designated beneficiary in your estate plan.
- Coordinate with your S Corp or partnership agreements: Some business structures limit who can hold ownership, and S Corps are particularly strict about what kind of trusts can hold shares. Ensure your estate plan complies with Georgia state law to avoid triggering unwanted tax consequences or rendering your business structure invalid.
- Clarify buy-sell agreements: If you co-own your business, a buy-sell agreement can spell out who buys your share, at what price, and how it will be funded (often, this is through life insurance).
Common scenarios for Georgia small business owners (and how to navigate them)
Solo entrepreneurs
Solopreneurs are the only person authorized to manage or access their business assets. If this is you, use a revocable trust to name a successor who could step in immediately if anything happened to you.
Married couples in business together
If one spouse passes away or is incapacitated, it can create legal ambiguity about who takes ownership of the business, especially if children from previous relationships are involved. Use coordinated trusts and clearly defined ownership rights to nip any ambiguity in the bud. Your estate plan should clearly dictate what happens to each spouse’s share of the business.
Non-family business partners or co-owners
If one partner dies without a plan, their share could go to an heir with no experience (or interest) in running the business. Draft and fund a buy-sell agreement so any surviving partners can smoothly buy out your interest. Review ownership and management rights regularly.
Taxes and business succession in Georgia
Most Georgia small business owners won’t face federal estate taxes. (In 2025, the exemption is $13.99 million.) But estate planning is still critical to prevent undue tax exposure; income taxes and capital gains taxes can impact your heirs if they decide to sell the business rather than run it.
Even if they don’t want to sell, a lack of liquidity (e.g., no cash available for payroll or operating expenses) could force your heirs to sell the business under pressure. And poor valuation planning can also lead to unnecessary tax burdens or disputes among your heirs.
Smart estate planning today will minimize these risks later.
3 things every Georgia business owner should know
#1: Name a qualified successor
If your business requires a license or certification to operate legally, name a successor who qualifies.
#2: Keep your LLC or corporation in good standing
Filings, fees, and registered agent updates matter for keeping your business out of probate.
#3: Don’t neglect commercial real estate
If you own any real estate used in the business, make sure it’s properly titled and included in your estate plan.
Special considerations for Atlanta-based business owners
If your business is based in Atlanta, there are a few additional factors to consider. For example, Atlanta-based businesses need an Occupational Tax Certificate, so ensure your successor reapplies or updates it upon your death or incapacity.
Frequently asked questions about estate planning for Georgia entrepreneurs
Can I put my Georgia business in a trust?
Yes, you can transfer your ownership interest into a revocable living trust, which will allow your successor trustee to manage the business or pass it on according to your wishes.
What happens to my LLC if I die?
Without an estate plan, your share of the business will go through probate. With a trust or operating agreement in place, it can transfer immediately to your chosen successor.
Do I need a buy-sell agreement?
If you have business partners, yes—you need a buy-sell agreement. This agreement should outline how ownership will be handled if one partner dies, becomes incapacitated, or exits the business.
Does a power of attorney allow someone to run my business?
Only if your power of attorney specifically includes business authority. A trust is usually far more comprehensive and effective for passing your business along to your heirs without complication.
Can I avoid probate for my business?
Yes. For most business owners, a revocable living trust is the most efficient way to transfer business assets outside of probate while maintaining control of the business during your lifetime.
Your business is more than a job—it’s part of your legacy. Schedule a strategy session to protect what you’ve built.
