There will come a time when every small business owner is ready to call it a day. Planning for that day is important to make sure that owner can maximize the value the company will bring, and minimize disruption to the owner's family, the company employees and the company's clients and customers.
Part of maximizing the value for the selling business owner is minimizing the tax implications of the sale. I will work with your CPA to help structure a purchase to best utilize available tax rules to minimize taxes owed on the sale.
Succession planning is often part of a small business owner's estate planning as well. For example, a businessman can transfer the value of his company to his children and other family members who are involved in the business through a plan of gifting small interests in the company on a yearly basis, keeping those gifts under the yearly maximum per-person gift tax limit ($14,000), but eventually turning over most of all of the value of the company without any adverse tax consequences to any of the parties.
Creativity, and clearly understanding the businessman's goals and plans are key to proper succession planning. Let's work together to see that your succession planning is handled correctly.
Attorney responsible for content of this site: David L. Howell. No attorney described here is certified by the Texas Board of Legal Certification in any specific area of practice. Copyright Law Offices of David L. Howell. All rights reserved.
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