Business Succession Planning

As you start to think of your retirement or moving onto new business ventures, you should also be planning for your business succession. The effective transition of your business to your successors is critical to its continued prosperity. 

Business succession planning should minimize capital gains, estate and other taxes for you as the current owner and your family members. Our tax experts can advise on the important tax issues that may arise during the succession planning process.

Legacy Tax & Accounting will work with you to develop a transition plan tailored to your business, whether you plan to have a family member, employees, or an external party take over. With a solid background in tax, succession and estate planning, and other financial matters, we can address the complex issues of business continuation.

Succession with Family Members

We work with business owners and their families to meet their collective business succession objectives. This may include the use of freeze structuring (with or without trusts).

Our accountants will also work with your lawyer to determine the use and content of a shareholder agreement to protect the interests of all parties.

Succession with Employees

Legacy will work with business owners and employees to implement share options or share ownership structuring in conjunction with shareholder agreements to protect the new owners and you as the original owner-manager. In these circumstances, there are often opportunities to structure the introduction of new owners in a tax-efficient manner for the original owner-manager.

Succession with Arm’s Length Owners

There are two vital options to consider when introducing an arm's length party into your business’s ownership structure; this is done through a shareholder agreement and life insurance planning.

Your insurance can be used to ultimately fund the shareholder agreement and provide for tax-efficient transfer of the business upon the passing of one of the shareholders.

 

Contact Legacy Tax & Accounting if you would like our tax experts to help you prepare your business for a successful future.

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