You’ve worked hard to build a successful business, and as you look ahead to your retirement here in San Diego, you should be thinking about your exit strategy: Will you sell your business, or pass it along to your family? Start this planning early, and if you want a successful transition, don’t just surprise your family with your final plan. It’s crucial that you involve your family as you answer important questions, such as determining which family members are best able and willing to run the business, whether these persons should get a greater ownership share than non-managing family members, and how to handle tax issues. Not only that, but you also need to make sure that you’ve planned for your own retirement needs.
You can transfer ownership of your business gradually, not only helping to keep things running smoothly since you’ll remain in control of the business, but also reducing tax liability. Richard C. Morais of Forbes Magazine proposes that you start making transfers now, to take advantage of depressed values during the recession. You’ll then be able to make transfers of a larger percentage of your business while staying within the limits of annual gift tax exclusions, all because for now, the business may be valued lower.
Plan now, because you don’t want to put your family in a position where they’ll have to sell the business when you’re gone, either because they can’t run it, or can’t afford the taxes. If it’s best to sell the business, then the sale will likely be more profitable if you sell it yourself while the business has goodwill. We’ll strategize and help you create a personalized and comprehensive business succession plan designed to meet your needs and that of your family. Learn more from our attorneys, and benefit from our expertise in business, wills, trusts, and succession planning. Contact San Diego Law Firm at (619) 794-0253.
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