business

Tips for Family Business Succession Planning

Statistics compiled by Forbes reveal that approximately 80 to 90% of businesses in the United States are either owned or controlled by families.  Other data reveals that only one third of these businesses survive into the second generation of a family and that only 10% of businesses make it to the third generation.  One of the reasons why businesses are not successfully passed between generations is lack of adequate estate planning. It is important to remember that there is simply no universal estate plan that works for every business, which is why options like online estate planning often does not work.  Instead, it is critical to carefully consider the various ways to pass ownership of a business between family members. Obtain the assistance of an experienced estate planning lawyer who can help guide you in creating the right business succession plan. The following will review some helpful tips that you should remember when creating a strong succession plan for a family-owned business.  Consider Changing the Business Structure If a business is structured as a sole proprietorship or a partnership, it is important to remember that these entities are viewed as comparable to personal assets of the owner and cannot be     Read More

Advantages of Estate Planning for Business Owners

A person’s estate plan has the capacity to contain critical information about what should be done with a person’s estate after his or her death. In nearly every situation, it is critical that a person begins estate planning as soon as possible because it is impossible to determine when catastrophe will strike or death will occur. For business owners, this type of planning is even more important because a significant amount of many business owners’ wealth is directly connected to their companies. As a result, the strength and nature of a business owner’s estate plan dictates how that business will be transitioned between generations and either cause a great deal of money to be lost or gained based on how the transfer occurs. This article will discuss some of the particular advantages that estate planning tools offer for business owners. Advantage #1: Estate Tax Reduction An estate tax is a tax that is placed on the estate of a deceased individual. These taxes can represent a large amount, and in some cases can cost up to 50% of a business’s value. Various elements of the Internal Revenue Service’s codes, however, allow individuals to use probate tools to minimize the amount     Read More

Tags: , , |