What your family gets for your contractor business if you die tomorrow — or can’t work for the next 12 months
A plain-language guide for GCs and trade contractors on what actually happens when the owner steps out of the picture. It is written for both single-owner and partner-owned contracting businesses — no financial background required.
In a single-owner business the risk is a family inheriting a company that cannot cleanly continue, transfer, or convert into usable value. In a partner-owned business the risk is a surviving owner trying to keep the company running while the other owner’s family stays tied to an interest nobody can value, transfer, or fund.
What it covers
- Owner-dependent licensing — the license is tied to a person, not to the entity.
- Bonding — capacity is underwritten on your track record and personal financial standing.
- Personally guaranteed debt and credit — the bank line exists because you signed for it.
- Customer relationships — built on you showing up, and rarely transferable with the entity.
- Legal default rules at death and disability — what governs ownership when nothing is documented, and why those rules were never written for contracting businesses.
The Four Paths Contractor Continuity Map
A practical way to answer one question before any other: which path are you actually on?
Path A
The Funded Agreement — Protected. A written continuity agreement with insurance in place to fund it. Death and disability triggers are defined, the family has a defined path to money, and a surviving owner has a defined path to control.
Path B
The Agreement on Paper — Paper Only. The agreement exists but nobody arranged the money. The transaction is described on paper and cannot be completed when it matters.
Path C
No Agreement, Two Owners — Exposed. Two or more owners and no buy-sell. Legal default rules decide what happens, and the estate can become an involuntary business partner with the surviving owner.
Path D
No Agreement, Sole Owner — Critical. One owner, no buy-sell, no documented continuity plan. The family may inherit a business interest that cannot cleanly continue, transfer, or convert into usable value.
The goal is not more paperwork. It is to identify the protection and funding gaps quickly and move toward a documented continuity position: a defined path to money for your family, a defined path to control for a surviving owner where that applies, and a plan for the business instead of a legal and financial scramble.
This guide is educational. It should not be taken as financial, legal, or tax advice.
