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Estate Planning for Small Business Owners

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					Estate Planning for Small Business Owners

For small business owners, estate planning needs to be a big deal. Normally, small
business owners have much of their family’s wealth tied up in their business, so
estate planning becomes even more essential.

For small business owners, estate planning needs to be a big deal. Normally, small
business owners have much of their family’s wealth tied up in their business, so
estate planning becomes even more essential. With the recent changes in the estate
tax laws, the 2011 and 2012 federal estate tax exemption has been raised to
$5,000,000 for individuals. While this would seem to only impact the wealthy, the
estates of small business owners often exceed this amount. Their families may
therefore be faced with a tax burden that makes it necessary to sell the business.

Successful business succession takes years of planning, and it often depends on
how the owner treats the business. Small businesses often fall into one of three
categories, sometimes not through planning, but through circumstances:

Owner Oriented Businesses

Many service oriented businesses revolve around the owner and the specific
expertise that they provide, such as a doctor, lawyer or accountant. These
businesses are typically run with the understanding that once the owner dies, the
business will terminate.

Family Businesses

Other businesses are started for the purpose of staying in the family for generations
to come, and they are run with the goal of the children becoming involved in, and
eventually taking over, the business.
Marketable Businesses

Many large businesses start as small businesses that are marketable, and poised for
either expansion by the owner or for a purchase by a larger company for
expansion.

Each of these categories will have different estate planning needs, so it is important
to identify where your small business stands in terms of goals and its future once
the founder passes away. While the first step is to identify which category your
business falls into, the second step is to work with an estate planning attorney to
begin estate planning to meet the needs and the goals of your family and your
business.




Experienced estate planning attorneys Portland OR of the Law Offices of Richard
B. Schneider LLC offers estate planning and business planning resources to
residents of Portland OR. To learn more about these free resources, please visit
www.rbsllc.com today.

				
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Description: For small business owners, estate planning needs to be a big deal.