As a business owner, you make the daily decisions that keep your company running—managing finances, overseeing employees, and maintaining client relationships. But what happens if you’re suddenly unable to make those decisions yourself?
Whether due to illness, injury, or another medical emergency, incapacity can have serious consequences for both your business and your family if there’s no legal plan in place. That’s why having the right documents prepared ahead of time is so important. If you’re not sure where to start, our Troy, MI estate planning lawyer can help you take practical steps to protect your business and your legacy.
Don’t Rely On Informal Arrangements
Many business owners assume a spouse, partner, or key employee could step in temporarily if needed. But without legal authority, even someone close to you may not be able to access business accounts, sign contracts, or make critical decisions.
Financial institutions, vendors, and even employees may hesitate or refuse to act without clear documentation. This kind of delay can stall operations or put your company at risk.
That’s why formal planning is more than just a backup—it’s a basic part of protecting the business you’ve built. With a solid plan, you can give someone the legal ability to step in and keep things running smoothly if you’re not able to.
Power Of Attorney For Business Affairs
One of the most important tools for business owners is a durable power of attorney. This document allows you to name someone you trust—often called your agent—to act on your behalf if you’re incapacitated.
For business owners, we often recommend a power of attorney that’s either tailored to include specific business responsibilities or entirely focused on your business.
You can give your agent the authority to handle bank accounts, sign contracts, manage payroll, or oversee real estate. You also decide whether their authority starts immediately or only if a doctor determines you’re unable to make decisions. A well-drafted power of attorney gives your business continuity while you recover or, if needed, serves as part of a longer-term management plan.
Planning Within Your Entity Structure
In addition to a power of attorney, it’s worth reviewing your business documents. If you have an LLC or corporation, your operating agreement or bylaws may already include procedures for transferring management during an emergency. If they don’t—or if you’re the sole owner—you may want to update them to include provisions for temporary control or succession.
Business partners should also consider a buy-sell agreement. These agreements often include disability triggers that allow co-owners to buy out an incapacitated partner’s interest or take over day-to-day operations temporarily. Without clear terms, disputes or delays could arise that affect the entire business.
It’s Not Just About The Business
Incapacity planning also protects your family and your employees. Without direction, your loved ones may face tough choices or legal hurdles while trying to step in. Employees may not know who’s in charge or how to move forward. Putting a plan in writing takes the guesswork out of a difficult situation and gives everyone peace of mind.
Design A Plan That Works For You
Incapacity can happen when you least expect it—but having a plan means your business doesn’t have to suffer. At Gudeman & Associates, P.C., we help Michigan business owners and families take clear, practical steps to protect what they’ve worked hard to build. If you’d like to talk about your options or review your current documents, contact us today to schedule a consultation with one of our estate planning and business law attorneys.
