Succession Planning

WARNING: Passing Your Business to a Family Member or Associate Can Be a Risky Proposition.

7 out of 10 family owned businesses will not survive the transfer of the business from one generation to another. Lack of planning and discomfort discussing topics such as aging, death, and financial affairs will more often than not result in loss of a business due to estate taxes, family discord, or some combination thereof.

If you want to assure that the business you worked so hard to build will be there to support future generations, you must clarify your plans for succession and finalize, as well as legalize your priorities.

Get professional advice for dealing with these key issues and more…

  • What will happen to your business? Do you wish to keep it in the family, sell it to a third party or pass it on in some other manner? We can help you weigh the advantages and disadvantages of each of your options, as well as help you determine how the business can best provide for you as you enter your retirement years.
  • If you are not running the business, who is? Ownership of the business and management of the business are often two distinctly separate entities. How will your retirement or death affect the day-to-day decision making of how the business is run? Will your children take active roles in the running the business, or will they exist as owners only? Clarifying your expectations in legal terms and making these decisions in advance will help ease the transition of ownership, as well as management, without further risk of detriment to the business as a whole.
  • How can you minimize the tax burden upon transfer? When businesses transfer ownership, taxes are a reality regardless of the relationship between the parties. Review your options with an expert in the field in order to make the decisions that will best support your family members and the business.

Remember that inherited assets, such as family businesses, are often the cause of tremendous emotional strain and stress for individual family members. It is best to address any actions that might be seen as fair or unfair ahead of time, so that family members know what to expect and why you are making the decisions that you are making.

They may not realize, for instance, that the tax implications of inheriting a business might be more burden than they could financially handle or that decisions involving management vs. ownership have been taken into account.

Contact us about our Succession Planning Services to determine the value of your business, before restructuring your business, to review the tax consequences and tax projections of your actions, and to help you plan for retirement.

Let Us Help:

Allied Tax & Accounting Consultants, LLC’s Guide to Successfully Managing Remote Employees

Scrolling the 9/11 tributes in my social media and news feeds this past weekend served as an excellent reminder of how we all can bounce back from great difficulties. And the reminder seems especially poignant now as our nation (and Charlotte business owners like you)...

Why Your Charlotte Business Needs Cyber Insurance

In today’s online-driven world, it’s no surprise that securing sensitive information is essential. Just like you cover your Charlotte business for other possible risks (property damage, theft, injury, etc.) so should you also be thinking of how to keep your business...

The Hiring Tips Your Charlotte Business Needs

It seems like everywhere SMBs and retailers are short-staffed (and hiring). At the same time, with high inflation plaguing the country, other businesses are in the middle of layoffs.It seems as if these two realities would meet together, and establish an economic...

IRS Red Flags Charlotte TaxPayers Should Steer Clear Of

The tax code is a complicated beast. And daunting even for the savviest Charlotte tax filers. All 6,871 pages of the tax code make it easy to miss or overlook things… and make mistakes. And, like it or not, that can lead to the IRS pulling the audit card on...

All About the SSBCI for Charlotte Business Owners

Fill in the blank: It takes a village to ______.While you’re probably thinking of child-rearing right now, I’d like to suggest that it applies to your Charlotte small business as well. And particularly during inflationary times. The 2020 world made it painfully...

Charlotte SMBs: Note These Changing Business Tax Deductions

This year has been a rollercoaster for Charlotte business owners like you. Heck, the last few years have been. After all of the junk in 2020 and 2021, “inflation” and “supply chain shortages” have been the recent flavor of our wild ride together. Though that said,...

Godwin Obimah’s C Corp Pros and Cons

Before I dive into discussing the pros and cons of a C corp, I briefly want to touch on some other things relevant to you as a Charlotte small business owner.Recession. The threat of it hangs in the air like a midwest thunderstorm. And as you anticipate it, you...

Shoring Up Tax Debt During Inflation

A little thing called inflation has been plastered all over the news cycle for the last few months now... and it’s taking its toll on Charlotte people. And to add to the difficulty of stretching those hard-earned dollars… increasing interest rates, rising prices,...

Changing Your Charlotte Business Structure – A Savings Opportunity?

Prepare, prepare, prepare. As a recession is bearing down on us all, figuring out how to prepare for economic downturns is something you should be concerned with in your Charlotte business. I know I am.Now, while you and I can’t prepare for every eventuality, we can...

Vendor Negotiation Tips for Charlotte Business Owners

Is your hustle muscle feeling strong right now? I hope so because if your business is going to make it moving forward, it’s going to have to be – at least for somebody on your business team. This inflationary environment virtually demands it (as does a likely...

Ready to come in for an appointment?

Click here to schedule a time to meet with us. We will NOT make dealing with a tax professional as painful as it’s been in the past!

Contact Us

bookkeeping services