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
Estate Planning for Business Owners
Business owners know the hard work, determination, and attention to detail that goes into building a company. A successful company, especially a family-owned one, may be an important component of an individual’s legacy. This is just one reason that estate planning is so important for business owners. Thoughtful estate planning for business owners also has great impact on their legacy because properly drafted estate Read More
Business Succession: An Important Part of Your Estate Planning
As a business owner, your responsibilities and duties may seem endless. Employment disputes, ordering supplies, paying vendors, and planning next year’s budget are just a few of the issues that fall on your shoulders. What happens to those duties if you retire or are no longer able to run your company? If you want your company to continue, then business succession planning should be an important part of your estate Read More
