Plan For Your Succession
WARNING: Passing Your Business to a Family Member or Associate Can Be a Risky Proposition.
7 out of 10 family owned businesses will not survive the transfer of the business from one generation to another. Lack of planning and discomfort discussing topics such as aging, death, and financial affairs will more often than not result in loss of a business due to estate taxes, family discord, or some combination thereof.
If you want to assure that the business you worked so hard to build will be there to support future generations, you must clarify your plans for succession and finalize, as well as legalize your priorities.
Get professional advice for dealing with these key issues and more…
- What will happen to your business? Do you wish to keep it in the family, sell it to a third party or pass it on in some other manner? We can help you weigh the advantages and disadvantages of each of your options, as well as help you determine how the business can best provide for you as you enter your retirement years.
- If you are not running the business, who is? Ownership of the business and management of the business are often two distinctly separate entities. How will your retirement or death affect the day-to-day decision making of how the business is run? Will your children take active roles in the running the business, or will they exist as owners only? Clarifying your expectations in legal terms and making these decisions in advance will help ease the transition of ownership, as well as management, without further risk of detriment to the business as a whole.
- How can you minimize the tax burden upon transfer? When businesses transfer ownership, taxes are a reality regardless of the relationship between the parties. Review your options with an expert in the field in order to make the decisions that will best support your family members and the business.
Remember that inherited assets, such as family businesses, are often the cause of tremendous emotional strain and stress for individual family members. It is best to address any actions that might be seen as fair or unfair ahead of time, so that family members know what to expect and why you are making the decisions that you are making.
They may not realize, for instance, that the tax implications of inheriting a business might be more burden than they could financially handle or that decisions involving management vs. ownership have been taken into account.
Contact us about our Succession Planning Services to determine the value of your business, before restructuring your business, to review the tax consequences and tax projections of your actions, and to help you plan for retirement.
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Click here to schedule a time to meet with us. We will NOT make dealing with a tax professional as painful as it’s been in the past!
What our Clients are saying
I became overwhelmed this past winter with an unusually high amount of bookkeeping and wanted to transition a growing client to a company that could handle the day-to-day transactions while keeping the personal care they were accustomed to (mail pick up, deposits to the bank, as well as the regular monthly reports for the board) I found Hometown Accounting to be a perfect fit and was very pleased with how easy, friendly, and personable they are when it comes to handling the needs of a business. I highly recommend!
I found Hometown Accounting to be a perfect fitMy partner and I own two business in Cuba (a well known restaurant and salon) Glennda and her team take a personal and exceptionally helpful approach to our accounting needs. This team is knowledgeable, professional, and thoughtful in their method, and ensures we take all the necessary action to stay compliant with the numerous laws and regulations that are often times overly complicated. If you need a hands off approach to an accountant, this is your team. If you need a hands on approach to an accountant, this is your team! They adapt to your needs, and are very reasonable in the pricing as well. Whether you need an accountant for personal needs, or business needs, they’ll have you covered. They even recently opened an office in Cuba, which is so helpful to us. Rita (who works the Cuba location) takes time out of her day to stop in weekly and print a specific report needed for our accounting purposes. While this may sound like a small thing, it strikes one thing off of my partner and my weekly task list. I cannot recommend them higher for their level of customer service.
knowledgeable, professional, and thoughtful