Zombie Businesses: Avoiding the IP and Succession Nightmare

What happens to your business when you die? If you're a sole proprietor, or if you don’t address succession planning properly for your partnership, LLC, or corporation, the answer is: zombie chaos. In this episode of Spellbinding IP: Patent, Trademark, and Business Strategy, attorney Julie King of King Patent Law walks through the legal reality of what happens to a business, and its intellectual property assets, when an owner dies without a succession plan. Using a real client case (fully anonymized) where a family business devolved into active litigation among family members, Julie shows she’s not being dramatic about the horrors that can ensue when you get it wrong. Then she explains exactly how to prevent the same fate for your business and your family.In this episode What a 'zombie business' is and why they're more common than you'd thinkHow entity choice (sole proprietorship vs. LLC vs. corporation) determines what survives youIllinois-specific rules under the Illinois Limited Liability Company ActWhy your registered trademarks and patents are especially vulnerable in succession chaosWhat a buy-sell agreement is, and why small businesses need one more than big onesA 7-step checklist to zombie-proof your business todayWhen to DIY and when to hire an attorneyTIMESTAMPS:(0:00) – Intro and hook: a real family's business nightmare(2:27) – What is a zombie business?(3:10) – Entity types and what they mean for succession(3:32) – The problems with sole proprietorships(4:31) – The perils of partnerships(5:03) – LLCs – Limited Liability Companies(5:43) – Corporations(5:57) – The Illinois LLC Act: what heirs do and don't get automatically(6:54) – Real-life zombie business nightmare and how it could have been avoided(8:41) – Your IP assets in succession planning: trademarks, patents, copyrights, trade secrets; the chaos that can ensue if it’s not included(10:21) – The operating agreement / bylaws as your survival document(11:18) – Buy-sell agreements(11:51) – Myth-busting for small businesses: why those buy-sell agreements aren’t just for large businesses(12:48) – Step-by-step: how to zombie-proof your business(16:37) – When to DIY vs. hire an attorney(17:50) – What to do if you can't afford to form an LLC right now(19:29) – Key takeaways and wrap-upAvoid the legal horrors, and keep rocking your IP.Full transcript and more resources at ⁠⁠kingpatentlaw.com/blog⁠ Ready to protect your brand and business? Book a consultation at kingpatentlaw.com⁠. We serve intellectual property clients nationwide and business and estate planning clients in Illinois.Disclaimer: This information is for educational purposes only, is not legal advice, and does not form an attorney-client relationship. For advice about your specific situation, consult with a licensed attorneyJulie King | King Patent Law, PLLC | 301 N Neil St Ste 400, Champaign IL 61820Contains attorney advertisement material.