Financial Planning for Business Owners
Business owners face unique challenges and opportunities in terms of financial planning and business succession.
Why Financial Planning for Business Owners is Important
Nothing is more exciting and rewarding as developing and growing your own business. As an employee of a company you may have been provided benefits that must now be replaced
What We Can Do for You
- Moving to Self-Employment - You’ll need a comprehensive plan that includes retirement planning and life insurance.
- New Business Owners - We can help you negotiate and explore options for a bank loan or line of credit to help fund office space, materials and business investments.
This is the process of protecting your business and its assets when a partner or owner are deceased.
Why Business Succession Planning is Important
The death of a partner, owner or major shareholder can have devastating effects on both the business and the deceased family members. The business is concerned with gaining control of the deceased partner’s interest at a fair price so that it can continue operations without interference from the surviving family members. The family members are most concerned with receiving as much money as possible for their interest in the business and for capital that may be needed for estate settlement purposes.
What We Can Do for You
- The need for a written agreement: Buy-sell agreements are a simple, yet effective way for business owners of privately held companies to plan for the orderly transfer of business interests where two or more owners are actively involved in the business. In addition to securing the needs of the surviving family members and ensuring the continuation of the business, a buy-sell agreement also ensures each owner that there is a buyer for their business interest at a fair price.
- Entity Plan: Under this arrangement, used when there are multiple owners, each of the business owners has a separate agreement with the corporation or partnership as an entity. The entity, per the buy-sell agreements, will buy the deceased partner’s interest at his or her death.
- Cross Purchase Agreement: Used in situations where there are two or three owners, a cross purchase agreement is established between each of the owners. At the death of one of the owners, the surviving owners agree to buy a proportionate share of the deceased owner’s interest.
