Succession Planning

WARNING: Passing Your Business to a Family Member or Associate Can Be a Risky Proposition.

7 out of 10 family owned businesses will not survive the transfer of the business from one generation to another. Lack of planning and discomfort discussing topics such as aging, death, and financial affairs will more often than not result in loss of a business due to estate taxes, family discord, or some combination thereof.

If you want to assure that the business you worked so hard to build will be there to support future generations, you must clarify your plans for succession and finalize, as well as legalize your priorities.

Get professional advice for dealing with these key issues and more…

  • What will happen to your business? Do you wish to keep it in the family, sell it to a third party or pass it on in some other manner? We can help you weigh the advantages and disadvantages of each of your options, as well as help you determine how the business can best provide for you as you enter your retirement years.
  • If you are not running the business, who is? Ownership of the business and management of the business are often two distinctly separate entities. How will your retirement or death affect the day-to-day decision making of how the business is run? Will your children take active roles in the running the business, or will they exist as owners only? Clarifying your expectations in legal terms and making these decisions in advance will help ease the transition of ownership, as well as management, without further risk of detriment to the business as a whole.
  • How can you minimize the tax burden upon transfer? When businesses transfer ownership, taxes are a reality regardless of the relationship between the parties. Review your options with an expert in the field in order to make the decisions that will best support your family members and the business.

Remember that inherited assets, such as family businesses, are often the cause of tremendous emotional strain and stress for individual family members. It is best to address any actions that might be seen as fair or unfair ahead of time, so that family members know what to expect and why you are making the decisions that you are making.

They may not realize, for instance, that the tax implications of inheriting a business might be more burden than they could financially handle or that decisions involving management vs. ownership have been taken into account.

Contact us about our Succession Planning Services to determine the value of your business, before restructuring your business, to review the tax consequences and tax projections of your actions, and to help you plan for retirement.

DTLACPA An Accountancy Corporation’s 7 Keys to Lowering Shipping Costs

Saw this on Twitter recently:See, solid bookkeeping is the most functional and crucial element of your business (besides making sales). If you don’t know what’s happening with money coming in and going out, you’re not funneling and arranging things in an organized...

Hiring a Consultant for Your Downtown Los Angeles Business

Remembering and honoring Martin Luther King this week has me thinking once again about being a voice. It’s hard not to get inspired listening to the iconic words of the famous I Have a Dream speech (if you’ve never listened to the entire speech, it’s worth...

Mastering Your Downtown Los Angeles Business Phone Answering

How is your year starting out? We’re into week 2 of 2023 … would love to hear back from you on what are the challenges you’re facing in your Downtown Los Angeles business finances right now.Relatedly, what are your customer service goals for this year?One customer...

Accepting Crypto Payments in Your Downtown Los Angeles Business

First of all, congratulations on making it through 2022. Pat on the back for sticking with it through the very real ups and the challenging lows. Many of our Downtown Los Angeles clients went through the wringer … others had their best year yet.From a personal...

7 Primary Tasks For Any Downtown Los Angeles Business Team

I don’t know about you, but after the holidays (and I hope yours were filled with good things and happy times with loved ones), I’m always a bit tapped out on the spending. But in true governmental fashion, Uncle Sam is piling it on. Seems like Congress missed...

Succession Planning Strategy For Downtown Los Angeles Business Owners

The 2022 clock is almost at midnight.An end to a still somewhat crazy year — “the crazy” seems like our new normal, post-2020, am I right? There were a lot of challenges this year and they were … exhausting. Keeping up with the changes and adjusting to the economic...

Sabillo’s 3 Big Tips For Entrepreneurs

Ready for some yuletide cheer? No, I’m not just talking about my big tips for entrepreneurs. Inflation might have hit its peak this year. So say the “experts.” That particular category of people hasn’t exactly covered itself with glory of late … so, we’ll see how...

Should I Extend Credit To My Downtown Los Angeles Customers?

Let me start out by once again reminding you that we are nearing year-end (as if you really needed my reminder).And while Downtown Los Angeles business owners like you are wrapping up things in 2022, you’re also at that optimal time to be thinking about what lies...

Sabillo’s Guide To Getting Tasks Done

Maybe I'm writing this today because the end-of-year crunch and getting tasks done is on our minds here at Team DTLACPA An Accountancy Corporation.Really, we only have a little more than a month left before 2022 is in the rearview. And my business brain wants it all....

Downtown Los Angeles Businesses choosing to live out of a place of gratitude

This week is an opportunity.To comfort ourselves away from the noise of our clamoring-for-attention society with good food and (mostly?) good company ... for sure.But also, to pause. There's not many opportunities for that as a Downtown Los Angeles business owner...

Ready to come in for an appointment?

Click here to schedule a time to meet with us. We will NOT make dealing with a tax professional as painful as it’s been in the past!

Contact Us

bookkeeping services