If you own a family business, retirement isn’t simply a matter of deciding not to go into the office anymore. You’ve got some critical questions to answer like…
“What happens to the business when you’re no longer running it?
“Will you have enough money to retire?”
The family dynamic complicates the whole transition because of the relationships and emotions involved. Most people are not comfortable discussing topics such as aging, death, and financial affairs. Comfortable or not, succession planning should be a priority for any family business considering that more than seven out of ten family-owned businesses fail to survive the transition from founder to second generation, typically falling prey either to estate taxes or family discord or both. Developing and implementing a well-designed succession plan is essential to the survival of a family business from one generation to the next.
We help you with these key issues:
Keeping it in the family. Are you going to pass the business on to your family or sell it to a third party? We help you weigh the advantages and disadvantages of each of these options. Who’s going to run the business when you’re gone? Management and ownership are not one and the same. You may decide to transfer management of your business to just one of your children or transfer equal shares of business ownership to all your children, whether they’re actively involved in the business or not. Minimizing the tax bite can be a burden when transitioning a family business ownership. The challenge of a family business is not generally a liquid asset, and taxes are typically due when ownership is transferred. Transferring family ownership often adds a tremendous amount of stress to individual family members. We talk with each of the family members to ensure that they feel they are getting an equitable and fair share of the pie.
What Rink & Robinson, PLLC can do for you…
Once we understand how you feel about the key issues above, we begin constructing your succession plan focusing on these 5 issues…
1. Business Valuation
2. Business Restructuring
3. Tax Consequences
4. Retirement Projections
5. Tax Projections
We are CPA’s in Hickory NC who make Business Succession Planning an easy task. We have over 55 years of business & tax planning experience in helping people plan for their future retirement. We provide services to businesses and individuals in all 50 states.