Whether you are starting a business or looking forward to the day you can retire, you need to make sure that your business has the proper business formation. Most business owners do not take the time to plan for how they will leave their business. They are busy running the company, or they don’t know where to start. But if you continue to own a business until you die, it will be included in your estate and could be subject to substantial estate taxes. Your family could be forced to sell the business or its assets at ‘fire sale’ prices. Then you will have worked hard all these years so that the vultures and Uncle Sam, not your family, will reap the benefits.
Planning for how you will exit from your business should be an integral part of your business formation and estate and retirement planning. Proper planning now can provide you with retirement income, reduced income and estate taxes, and even let you benefit a charity if you so choose, regardless of whether you transfer your business to family members at discounted values, to employees, or to an outside buyer. In today’s market, the economy and trends are affecting the timing and value of business transfers.
Business Formation and Business Succession for your company will enable you and your family to receive the best possible tax and asset protection results, both now and after your retirement, disability or death. Contact the attorneys at Estate Plan Strategies, LLC today if you have questions about forming a business entity, you would like to review your current business formation or you would like to discuss Business Succession Planning, including a Business Exit Strategy.