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p The constantly changing tax laws are an ever present threat to the succession and continuation of a family enterprise. Be sure to use the experienced expertise of a business accounting firm, estate planning attorney, tax attorney and business attorney to ensure you will maximize your profits while minimizing tax liability, while successfully planning to pass on your estate and business to your heirs in the most tax preferential way. Keep these estate planning considerations and challenges in mind when planning your family business for succession and continuation./p
pstrongMaintaining Liquidity/strong/p
p If there is deficient cash to pay for estate taxes, then the cash will be drained from the business when it really needs it most. Plan for the perpetuation of the family business and maintaining its liquidity and cash flow or you may be forced to sell its prized assets or exclusively./p
pstrongProper Estate Planning willhellip;/strong/p
ul
liReduce the need for beneficiaries to remove funds from the business./li
liMaintain beneficiariesrsquo; interest stakes by keeping funds in the Company./li
liProvide a fluent transition when developed in conjunction with the Management/ Leadership Strategic amp; Succession Plan and the Companyrsquo;s Operating Authority Plan. /li
/ul
pstrongSell the Controlling Stake in Advance/strong/p
pSelling the patriarchrsquo;s / matriarchrsquo;s stake in the business, in advance of any Succession Plan implementation (whether a planned or sudden departure) to family members can be the best estate planning a family business can employ, while giving the business leader control of the Company and a href=http://www.businessconsultingabc.com/Writing_An_Effective_Business_Plan.htmlBusiness Plan/a until the agreed upon relinquishment./p
pstrongTools to Minimize Estate Tax Liability/strong/p
pThere are a host of structural tools which can be used to minimize estate tax liability, that should be fully explored with your Financial Advisory Team, such as:/p
ul
liGifting/li
liStock Sales/li
liTrusts/li
liLimited Liability Corporations/li
liFamily Limited Partnerships/li
liShare holder Buy/ Sell Agreements/li
/ul
pstrongBusiness Valuation/strong/p
p A value of the business that is in compliance with IRS rules and regulations is of paramount importance, as both overvaluing or undervaluing a business for tax purpose can be very expensive mistakes. Having an excellent team of tax and financial advisors to assist you is absolutely essential./p
pstrongConsult a Tax Attorney and CPA/strong/p
pExperienced tax attorneys and CPAs specializing in family businesses are an absolute must. Seek their advice and opinion. This article is not meant as tax or legal advice. Be sure to consult a licensed professional./p
pstrongAbout The Article Author/strong/p
pstrongemFrank Goley/em/strong has a diverse and varied experience base as a business consultant, business turnaround consultant, business plan expert, business plan writer, business coach, small business consultant, business planner, marketing consultant, online marketing consultant, seo consultant, and a href=http://www.businessconsultingabc.com/ target=_blankBusiness Plan Consultant/a for strongemABC Business Consulting/em/strong. Frank is considered an expert in writing, developing and implementing business plans, business turnaround plans, funding business plans, a href=http://www.businessconsultingabc.com/Developing_and_Writing_A_Winning_Marketing_Plan.htmlMarketing Plans/a, strategic plans and web marketing plans. Frank offers comprehensive business consulting, business coaching, business turnaround consulting, along with web seo, web development and web marketing consulting, to small and medium size companies. Frank is the author of a business plan book, emThe Comprehensive Business Plan Workbook ndash; A Step by Step Guide to Effective Business Planning/em, and he has over 50 published articles and e-books on business success strategies. He also writes the Business Success Strategies Blog./p