In this post, we are going to look at a couple of different concerns that may be a factor when you are engaged in your business planning efforts. First, we will look at business planning for people who are partners in small businesses. Let’s say that you are one of three partners in a small business. The business is very successful, and the share that is owned by each partner is quite valuable. In fact, your share in the business is your most valuable asset, and you want its value to be … [Read more...] about Explore Business Planning Strategies
We have often heard it said that we live in a litigious society. Any business owner could potentially be the subject of a lawsuit, but some people are more vulnerable than others. For example, physicians and landlords are often targeted by litigious types. All business owners should consider the value of asset protection, but it is absolutely essential for those who are in certain lines of work. Let's look at a couple of the legal structures that are typically used by … [Read more...] about What Legal Structures Provide Asset Protection for Business Owners?
Each individual is going to be in a completely unique situation when it comes to estate planning. There is no universal estate plan that is perfect for everyone because different circumstances call for different courses of action. For example, the federal estate tax exclusion is $5.25 million in 2013. If your assets do not exceed this amount you have no reason to position them in a way that would protect them from the federal estate tax. On the other hand, if you are exposed you would want to … [Read more...] about What Is a Family Limited Partnership in Indiana?
When you are self-employed your primary concern when you first start out is going to be to simply make it over the hump and survive. After some time you may recognize the fact that you are indeed on firm footing, and at this point you have some advance planning to do with regard to retirement. When you work for an employer you are usually going to be offered the opportunity to participate in a 401(k) plan, and many times the employer will match your contributions. On the other hand, … [Read more...] about Retirement Planning for Business Owners
Most employees of companies do not have to concern themselves with the future of the company after they retire or pass away. Of course loyal individuals certainly care about the company that they invested so much energy into over the years. But the truth is that when the time comes to step away the company will simply self-navigate into the future. Conversely, succession planning is a very prominent concern for business owners who are planning for retirement and their eventual … [Read more...] about Succession Planning: What Lies Over The Horizon?
Some people are going to have different concerns than others when it comes to estate planning. One of the first things to prioritize when you are evaluating your situation is going to be whether or not your estate is exposed to the federal estate tax. There is a particular quantity of resources that can be passed along before the tax kicks in. Right now this exclusion stands at $5.12 million, but it is going down to just $1 million at the end of this year. The rate of the tax is … [Read more...] about Taking Action To Protect Land-Based Businesses
Long-term financial planning is important for all serious minded individuals. If you want to be able to provide your children with opportunities for higher education and then subsequently have the resources that you need to retire in comfort you have to plan ahead intelligently. If you just go forward groping in the dark step-by-step you may find yourself in a difficult position later on in your life. Along the way you may not be able to provide for your children in the manner … [Read more...] about Long-Term Business Planning
Buy-sell agreements are often used by partners in small businesses who are engaged in succession planning, and they can provide a solution to a rather challenging situation. If you are a partner in a small business you may find that your share is your most significant financial asset. But you probably don't want to give this asset in its entirety to just one of your heirs. So how do you make it liquid so that you can spread it to multiple family members without forcing them to sell … [Read more...] about What Is A Buy-Sell Agreement?
The correct approach to estate planning is something that is going to vary on a case by case basis depending on your unique situation, and with this in mind, let's take a look at succession planning for small business partners. If you are a partner in a small business your financial share in the business may represent the largest asset that you have. When you pass away your partners are probably still going to want to remain in business, and it is likely that you feel the same way … [Read more...] about Succession Planning Strategy For Small Business Partners
When my clients talk about starting a small business, they see that business as a means to several ends. If profitable, it will give them the ability to increase their income and support the lifestyle they want. It also allows them a freedom they just can't find anywhere else - to be their own boss and call their own shots. But all of this pales in comparison to one of the biggest dreams that small business supports, and that is the ability to build a legacy that they can leave to their … [Read more...] about Estate Planning For Your Small Business