Like many family business owners addressing their succession plan, Diane and Tom zero in on the family business and neglect to include their entire estate in their planning efforts. Proper succession planning considers assets beyond the family business. Founders should evaluate their whole estate and identify assets outside of the business that can also be bequeathed in an effort to achieve fairness.Read More >>
You get an oil change every three months to protect your car. You get a check up every year to protect your health. You file your taxes every year to prevent issues with the IRS. But what are you doing to protect your family and your business when you will not be around to protect them yourself?Read More >>
You are not considering selling your business soon. Fortunately, you are not going through a divorce, and no one has died. So why would you need to pay to find out the value of your business? Some of the many reasons business owners choose to investigate the true value of their business extend far beyond the reasons listed above.
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Suppose you’re a partner in a partnership where the agreement requires you to work some of the time for the business. Can you ever be treated as an employee of the partnership for tax purposes instead of as a partner? The lines may become blurry, but the IRS has maintained, at least up until this point, that partners aren’t employees.Read More >>
It’s awkward. And complicated. And emotional. But dealing with what happens to your estate after your death is an unavoidable and essential task. Like many people, you may have consulted an estate attorney to create a trust and will, ensuring that assets pass along to selected family, friends or institutions. However, like many people, you may not realize there is another step to take. A step that, if missed, could mean your wishes are not followed or your beneficiaries pay more taxes or wait longer to have access to their inheritance.Read More >>
How much is my company worth? It seems like a simple question. You might be asking it because you are working on your estate plan. Or you may be creating a buy/sell agreement. Or you may be completing your annual business financing applications and personal financial statements and question the appropriate inclusion for your balance sheet. Or you may be considering the acquisition of a strategic partner and evaluating purchase terms. Or maybe you are embarking on a strategic planning exercise want to identify the factors that would prove most significant in enhancing value and market position. Regardless of the reason you’re asking the question, the answer is the same: you need a business valuation. Simply put, a business valuation is exactly what it sounds like: it determines and communicates the value of your company. However, it gets more complicated when you begin to consider all the factors involved in determining value.Read More >>
Your son John has the best sales record on the team. Your daughter Mary’s advertising campaign was a huge success. But despite their talents and success, neither has a head for numbers. And neither has much savvy when it comes to culture and management. Kevin, your right-hand man for the last 15 years, runs operations smoothly, managing both finances and people with ease. He’s the obvious leader. But he’s not family. And he’s not an owner. As you begin to plan for your retirement, how do you do what’s best for your family without risking losing Kevin? Focusing on the company as an entity rather than the people as individuals allows you to set emotion aside and gain the perspective you need.Read More >>
Ballot boxes. Campaign posters. Donkeys. Elephants. The upcoming presidential election is monopolizing the media and likely many water-cooler conversations as well. Whatever your political beliefs, understanding how proposed tax plans will impact your tax situation, your business and your estate plan will help you be better informed regardless of who is elected. While the candidates do not have the power to determine tax law without Congress, their platforms contain a framework of the tax laws they hope to influence.
Assuming Hillary Clinton and Donald Trump are the two candidates most likely to appear on your ballots, an examination of the candidates’ platforms reveal distinctions in several areas, including complexity of tax law, income taxes and capital gains taxes and estate taxes and planning.Read More >>
The Department of Labor has just announced a final rule on overtime pay, which will now require 4.2 million more workers to be paid for overtime work. This final rule defines which white collar workers are protected by the Fair Labor Standards Act’s (FLSA) minimum wage and overtime laws. Employers must comply with these new regulations by December 1, 2016.Read More >>
According to recent statistics, your chances of being audited by the IRS are less than 1%. Sound like a non-event to you? Don’t be lured into a false sense of security. The statistic is a blended rate covering many types of incomes and taxpayers. Found in this blog post are some of the reasons returns were audited.Read More >>