3 Estate Planning Strategies for Small Business Owners

Failure in estate planning and communication is one of the major reasons why small businesses fall apart. Yes, this is how important estate planning is.

Small business owners need a strategy for managing personal assets and determining what will happen to their business in the long term. What if you are not around your business for a week, a month, or years? Or even worse, what if you die? These are some of the questions that are unpleasant to think about yet extremely important to entertain.

If you are a small business owner or plan to become one, here are three estate planning strategies for you.

Estate Planning can Help Minimize Taxes

Building up a business into a profitable entity requires your blood and sweat. So why lose the fruits of your labor to estate taxes? Sounds like a horrible idea.

Do you know that you ought to pay 35 to 50% of your business value to estate taxes? And that, too, within the nine months of your passing? Well, this is a bitter reality.

Don’t worry since estate planning can save your business from becoming a fire sale. To know how, contact us today or visit our office.

Buy-Sell Agreements

If you don’t know yet about buy-sell agreements, it is basically a contract between business partners if one partner dies or gets incapacitated.

One good aspect of this agreement is that families from both sides can communicate openly, reducing any potential disaster. Bringing them into use can prove helpful for small businesses.

Seek Guidance from an Estate Planning Lawyer

If you consider yourself to be in a similar situation, you should obtain the assistance of an estate planning attorney. We would be pleased to help you with any usual or critical situation of yours. Contact us or today or visit our office.