How to Keep Your Oregon Business Running If You're in the Hospital Tomorrow

Entrepreneurs often work through everything: deadlines, holidays, even illness. But a sudden hospitalization is different. If no one has authority to sign checks, pay employees, access passwords, or make operational decisions, the business can stall in days.

This is why every business owner needs a business continuity estate plan that addresses immediate and short-term emergency authority.

What Legal Documents Do Business Owners Need for Emergencies?

Standard estate planning documents aren't designed for business operations. Your business needs specific legal tools to keep running if you become incapacitated, even temporarily.

A financial power of attorney with business-specific powers is essential. Standard powers of attorney do not authorize someone to process payroll, file tax returns, make vendor payments, or access merchant accounts. Your document must explicitly grant these business-related authorities.

How Do You Prepare Someone to Run Your Business?

Beyond legal authority, your successor needs practical information. Operating instructions serve as an emergency playbook outlining bank accounts, payroll schedules, key vendors, insurance contacts, and critical passwords. Without this roadmap, even someone with legal authority may struggle to keep operations moving smoothly.

What Corporate Documents Are Required?

Banking institutions and payroll providers often require entity-level corporate documents before accepting a power of attorney. Corporate resolutions authorizing emergency control ensure that financial institutions will honor your designated decision-maker's authority without delays or legal challenges.

Who Should Have Authority to Step In?

Someone must have legal authority to act as successor manager, successor member, or successor shareholder during your incapacity, even if it's temporary. This designation should be formalized in your operating agreement or corporate bylaws to prevent disputes and ensure seamless transition of authority.

How Do You Protect Against Liability During Incapacity?

If your absence creates operational risk, your insurance coverage must stay in force. Your continuity plan should address liability and insurance coordination to protect both your business and your designated decision-maker from potential claims.

Planning for Business Continuity

Your business doesn't stop when you're sick unless you haven't given it a legal way to keep going. A business continuity plan protects your employees' livelihoods, maintains client relationships, and preserves the value you've worked so hard to build.

If your business depends on you, we can help you create a comprehensive continuity plan that protects your employees, clients, and family. Contact us at (503) 235-5150 to schedule a consultation and discuss your specific business situation. Mention this article when you call, and we'll help you build the legal framework your business needs to survive an unexpected crisis.