Business Planning - Key Questions:
- How have you arranged for your family business to stay in the family?
- When did you put your business succession plan on paper? When did you last review it and update it for structure and valuation purposes?
- Is your succession plan funded for both death and disability?
- What is your exit strategy for "monetizing" your business?
- How protected is your business in the event you become seriously ill, severely injured, or die?
- How much is your business worth? Have you insured the business at that value?
Financial planning for owners of closely held businesses involve:
- Protecting the business owner (and owner's family) from owner's (and key employees') disability or death
- Retention of key employees
- Use of retirement plans (for tax advantaged savings and diversification)
- Lifetime ownership and management transitioning (monetizing the business interest for the owner's retirement)
Choices of the proper business entity for the business owner involve issues such as:
- Limited liability
- Fringe benefits
- Flexibility to expand (including going public)
- State and federal tax planning (including AMT, capital gains and taxation at sale or liquidation)
- Continuity of life
- Centralized management and the ability to freely transfer ownership interests
The above list is not inclusive but includes many of the major reasons for business entity selection.
Hybrid Agreements - Wait and See Buy/Sell
Key Employee Death Protection
Key Employee Retention
Lifetime Exit Strategies for the Closely Held Business Owner