Managing Your Business

Whether you are looking to cash in now or thinking about holding onto your business for several more years, it makes sense that you look after your largest illiquid asset and consider the timing of a potential transition. 

This tax-free structure is frequently used as part of a presale strategy for changing certain undesirable attributes of an operating company such as a name change or reincorporation.

US tax policy changes remain top of mind for many closely held business owners in 2022. Major tax changes for businesess in recent years have resulted in a major corporate tax rate reduction, generous expensing and depreciation rules for businesses and a passthrough qualified business deduction for non-corporate entities.

Our experience at Key Private Bank is that approximately 50% of business owners will choose to sell their business to a third party. And just as most homeowners use an expert (a real-estate agent) to sell their house, many transitioning business owners will hire an expert in the form of an investment bank to sell their companies.

Creating irrevocable trusts now for the benefit of children or charities for tax reasons can be an effective strategy for protecting those assets.

With the midterm elections approaching and global tax reform initiatives gaining attention, the viability of passing new tax legislation appears to be in limbo. Nevertheless, it is beneficial to understand how current tax law proposals contained in the 2023 budget proposal (The Green Book) could affect privately held business owners.

It is estimated that one lawsuit is filed every thirty seconds in the US, and about one in every ten adults are sued each year.

It’s commonly held that three out of four private business owners will want to transact in the next decade. Yet of the 20-30% who do, three-quarters regret their decision. Why?

With a focus primarily on charitable gifts, our article How Late Is Too Late? When Is It Too Late to Implement Pre-Sale Tax-Saving Strategies? sorts through the timing requirements that must be met for you to gain substantial tax advantages.

Family Wealth Strategist Carey Spencer hosts this fast-paced discussion with Managing Director of Family Wealth Consulting Jeff Getty and Consulting Director Joel Redmond as they outline the disruptors and misconceptions swirling around business transition options.

So, you were approached, spontaneous and unsolicited, with a compelling offer for your business. Maybe it was more than you expected. What comes next? Should it be considered more than you expected?

Tax planning is essential when a small business owner contemplates a future sale of stock in the business. If the owner hasn’t prepared for the sale ahead of the sale, taxes may take a big bite out of the profit.