Question

One of your business clients has owned and operated his own business as a sole proprietor for over 30 years. He now wants to do some retirement/succession planning. On the issue of the legal structure/ownership of his business, the best advice for him would be to:

Answer 1

Incorporating the business and selling the shares to investors to take over as successors

Step-by-step explanation:

Business incorporation is the legal process through which a business is formed.This allows an incorporated business to sell shares or stocks to interested investors , giving them the power of ownership in proportion to the volume of shares held , and the liability limited to the investment in the business.

It has the advantage over other methods of succession planning in active involvement in the business , limited liability and easier procedures.