Many family-owned businesses won’t survive the transfer from one generation to another. Poor planning and neglecting to discuss uncomfortable topics such as aging, death, and financial affairs are often a contributing factor in the loss of the business. Other factors often include estate taxes, family discord, or both.
If you want to ensure that the business you’ve spent your life building will be there to support the future generations of your family, it is critical to clarify your plans for succession and to finalize and legalize your priorities.
When planning for the future of your business, we can help you work through key issues including:
- What will happen to your business? Do you want to keep it in the family, sell it to a third party, or pass it on to someone else? Our team will help you weigh the pros and cons of each option, and help you determine how you can best benefit from your business as you enter retirement.
- If you step down, who will run the business? Ownership and management of a business are often two distinctly separate entities. How will your retirement or death impact the day-to-day process of running the business? Will your children play an active roll in decision making and running the business, or will they act as owners only? Laying out your expectations in clear, legal terms and making these decisions in advance will simplify the transition of ownership and management while reducing the risk to your business.
- How can you minimize the tax burden upon transfer? When you transfer the ownership of your business, taxes are a reality regardless of the relationship between the two parties. Review your options with our expert team and make the decisions that will best benefit and support your family and your business.
It is important to remember that inherited assets, like a family business, can often cause tremendous emotional turmoil and stress for your family. To help ease this burden, it’s best to address any decisions that may be seen as fair or unfair ahead of time, so your family knows what to expect when the time comes.
While they may not be happy with some of the decisions you make, it is important that they understand your reasoning. They may be unaware that the tax implications of inheriting a business may be a burden that they are not financially prepared for, or that decisions involving management vs. ownership have been considered.
Ready to Request an appointment?
Contact our office at (469) 567-3017 or fill out an appointment request form to speak with a member of our team to discuss our business planning services, and start planning for retirement, today!