In December of 2017, President Trump signed a tax reform bill into law. The Tax Cuts and Jobs Act generated a lot of excitement for provisions that reduced taxes and greatly increased the estate tax exemption. This new law also provided a significant benefit to small business owners – the 20% small business deduction. However, there are restrictions on which businesses qualify for this tax benefit. How the 20% Small Read More
Tax Reform and Limited Liability Companies
President Trump signed the Tax Cuts and Jobs Act into law on December 22, 2017. Tax reform offered sweeping changes for individual taxpayers and business entities, like limited liability companies. Limited Liability Companies Are Popular, Now More Than Ever For years now, the limited liability company has been one of the most popular business entities to form. As pass-through entities, limited liability companies Read More
Keeping the Family Business
According to the Service Corps of Retired Executives (SCORE), there are 28.8 million small businesses in the United States. Family businesses make up 19% of that total. Roughly 60% of U.S. employees work for a family-owned business. These statistics do not reveal the painful decisions a family may face over the fate of their company. Unfortunately, families often must decide whether keeping the family business is in Read More
Elder Law and Estate Planning: Preparing for Your Golden Years
Life moves fast, and sometimes we don’t think much about retirement until it’s almost there. We may have been contributing to retirement accounts for years, but what about our estate planning? Can elder law and estate planning help you prepare for your golden years? Estate Planning Near Retirement Age As we age, we focus on different needs. Young professionals in their 20s and 30s will not have the same questions Read More
Family Limited Partnership: Any Disadvantages?
Gene and his wife, Charlotte, own several prosperous restaurants in Port St. Lucie and Palm City, Florida. As they begin their annual estate plan review, they re-examine their goals. Their son, Grayson, helps manage the restaurants, but their daughter, Courtney, lives and works in Nevada. Gene and Charlotte want to make sure both their children and their grandchildren benefit from their success. They consult with Read More
How to Protect Your Business from an Owner’s Incapacity
If you own a business, ask yourself this question: What would happen to my business if I could no longer work? Fortunately, there are ways to protect a business from an owner’s potential incapacity. The best way is to develop plans before incapacity strikes. Start at the Beginning Legal documents usually are prepared when forming a business. The number and type of documents varies depending on the type of entity Read More
A Business Owner’s Considerations During Divorce
Shortly before their wedding, Mack and Julia opened a business that manufactured and distributed small electronics. Their three partners were Mack’s friends from college. After 12 years, Mack and Julia decided to divorce and began dividing up assets. As business owners, they now had to consider how to handle their business during their divorce. Basic Considerations. When it comes to dividing assets and debts in a Read More
Training the Next Generation Through a Family Limited Partnership
Dave and Eleanor Watson headed up a family of four children, nine grandchildren, and two great grandchildren. Their success in life had enabled them to amass a modest fortune that they hoped would benefit their family for future generations. They established a family limited partnership to manage their wealth. Dave and Eleanor also hoped their family limited partnership would help train the next generation in Read More
Selling the Family Business
After a long stint serving as the leader of the family business, you may decide it’s time to sell. It may be an emotional time, or just business as usual. Still, selling a business brings forth many considerations and questions. Making the Decision. Consider how the business is owned. Is there one owner (mom or dad, for example) or is the business held by a family trust? Does anyone else need to be a part of the Read More
Family Limited Partnership: A Few Pros and Cons
Families often share homes, vacations, holiday traditions, and fond memories. Sharing a business, though, is more complicated than shutting down the summer cottage together or planning next year’s family reunion. One type of family business is called a family limited partnership. It’s not just a business entity, though. It can be a powerful estate planning tool. Keeping it in the Family. A family limited Read More
