For those who run a family business in particular, retirement doesn’t just mean not going into work anymore. As well as deciding who continues running the business, you also have to ensure you have enough money to enjoy a prosperous retirement. A successful succession plan is key to a smooth transition.
Few people are comfortable when it comes to discussing emotional issues like death, financial affairs, and aging. However, an estimated 70 percent of family-owned businesses don’t survive the period of transition from an original owner to the next generation, and only 15 percent make it to the third generation. If arguments and general discord don’t hurt the business, estate taxes most certainly will. Therefore, you need help with the following succession planning issues:
- Family matters: If you have a family-owned business, will it be sold to a third party or kept in the family? At Singer Tax & Accounting, PC, we help you weigh the pros and cons of each decision.
- Who will take over? Ownership and management are not one and the same. For example, it is possible for you to name one of your children as CEO but ensure all your children have equal ownership of the business regardless of whether they are actively involved or not.
- Reducing the impact of taxes: If you are attempting to transition your family business, the tax burden can be immense. Although the business is not generally a liquid asset, taxes are normally due when ownership is transferred.
- Minimizing stress: As well as placing stress on you, transferring ownership of a business can be stressful for all concerned, especially if the business is being kept within the family. A smart succession plan will be as fair as possible to all parties to ensure no legal action is required after the event.
- A business evaluation.
- Restructuring of the business.
- An analysis of how you will be affected by taxes.
- Your retirement projections.
- Tax projections.
Our accounting professionals have helped countless businesses make a successful transition due to detailed succession planning. Once you hire us, we get to work on your behalf immediately and provide:
Eliminate stress, make sure everyone is treated as fairly as possible, and above all enjoy your retirement by using our Phoenix corporate tax team to help you with succession planning.