Abstract
When you own your own business and you meet your demise, not only has your family lost you, but your business has lost its leader. Can your business be liquidated or continued in a manner that maximizes its value to your family? Have you created a situation where someone has the know-how and skill to replace you? If that’s not possible, can the business be sold? On the upside, tax laws love a family business, so your tax burden might be deferred or reduced.
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Notes
- 1.
If you have a group of employees interested in purchasing the business, they may be able to do so on a tax-advantaged basis through an employee stock option plan (ESOP). Reach out to your business attorney if this seems like a possible exit strategy for you.
- 2.
Looking for some ideas to leave the business to your kids as cheaply as possible? Go back to Chapter 11, “Advanced Tax Strategies.” Then call your lawyer and accountant together for a meeting about your goals and ideas.
- 3.
If Patrick wanted to reward Nathan for all his hard work over the years, he could layer into this approach the ability for Nathan to purchase the business for a discount from the appraised price.
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© 2013 Deirdre R. Wheatley-Liss
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Wheatley-Liss, D.R. (2013). Planning Guide for the Family Business. In: Plan Your Own Estate. Apress, Berkeley, CA. https://doi.org/10.1007/978-1-4302-4495-0_18
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DOI: https://doi.org/10.1007/978-1-4302-4495-0_18
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Publisher Name: Apress, Berkeley, CA
Print ISBN: 978-1-4302-4494-3
Online ISBN: 978-1-4302-4495-0
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