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.
Ready to come in for an appointment?
Our schedule is very full…but if you call us at (801) 278-2700 or email us we’ll give you two options for coming in right away! We will NOT make dealing with a tax professional as painful as it’s been in the past!
What our Clients are saying
We have been with Utah Real Estate Accountants less than 90 days. I love my friend who recommended them so highly!
Our prior accountant was slowly slipping into dementia (bless his heart). We were desperate for help and Janet took hold of the problem and has the accounting and tax corrections for 2015 and 2016 well in hand. We are current for 2017 and she is helping me put together a budget, teaching me how to use the software. She is wonderfully patient. Before Janet came along we were spiraling in a chaotic mess. She reminds me that it is all coming together, “One step at a time”. I need an accountant who is well organized and reliable. Utah Real Estate Accountants rings the bell!
Cambria Nelson, Quail Hollow of Holladay (Multi-Family)
On several occasions, as I am setting up my business in Fairview, Utah, I have had occasion to call Utah Real Estate Accountants.Of course, they invited me to come in for a FREE consultation, but I am more than two hours from West Jordan. Both times I was able to get my questions answered over the phone. One of the questions was complicated. I was apprised of the risks. I respect that they left it up to me to choose the best path of action for my circumstances and tolerance for risk. I recommend Utah Real Estate Accountants for any business that serves the real estate industry.
Dave Olsen, Locksmith