VIEWS: 11 PAGES: 2 CATEGORY: Legal POSTED ON: 6/24/2011
Estate planning is extremely important for business owners who want their business to continue operations after their death.
Estate Planning for the Business Owner Estate planning is extremely important for business owners who want their business to continue operations after their death. Many businesses in the United States are either family owned or family controlled. Although the majority of family businesses are small companies, there are a percentage of large family owned corporations. Statistics reveal most family businesses fold after the founder’s death. Even if your business should survive the transfer from you to other family members, data says it will still have about a 50% chance of failure in the near future. The most common reasons a family business does not survive into the next generation include the family members themselves, taxes and available money. The Succession of Your Business A family business has better odds of continuation when there is less confusion about the succession. Long before it is time to transfer your business, you should decide who receives it. If there is more than one acceder, you need to define the percentage of the business each person receives and his or her roles in the business. In addition, you need to ensure your business is protected from divorce, not only for yourself, but for your children as well. This is to prevent an ex-relative obtaining any portion of the business. Cash and Taxes You also need to attend to any estate planning that could save assets and money. There is a number of estate planning tools available to reduce taxes on your estate and provide working capital for your company after your death. It is recommended an experienced attorney assist with developing your estate plan to ensure your children and future generations enjoy the benefits of your hard work. Experienced estate planning attorneys Fayetteville AR of the Deborah Sexton Law Office PA offers estate planning and business planning resources to residents of Fayetteville AR. To learn more about these free resources, please visit www.arkansas-estateplanning.com today.
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