Professional advice can be invaluable and very essential if you anticipate that your business will have a market value based on something other you’re your personal skills and goodwill when you retire. Although, it is possible to structure your own business succession plan, the use of teams helps you to achieve a greater result.
The team members you choose to help plan your business succession will depend upon the size and complexity of your business, its stage on the business life cycle, and your personal career stage.
Taxation and Business Succession Planning
Tax minimization strategies shouldn’t drive the business succession planning process. They should be an integral part of any decisions that are made. Tax planning involves more than simply minimizing the taxes that you and your business pay on an ongoing basis. The tax planning process is designed to accomplish the following goals:
- Taking full advantage of tax exemptions available to you and other shareholders when you sell your business.
- Deferring tax liabilities from one generation to the next.
- Reducing any probate fees that may be charged to your estate upon death.
- Structuring your estate to minimize the tax liability of your estate and help ensure that funds are available to cover this liability.