A small business is a part of your identity, not to mention your livelihood. Minnesota business and estate planning lawyers look to protect both aspects of this should you die or become incapacitated. Advanced planning is one of the smartest things that you can do to ensure that your small business meets the goals you have for it, whether you are at the helm or not. A business planning lawyer will:
- Make sure that your wishes are followed
- Ease transition for the company
- Protect the business from being dismantled
- Save considerable money
When you think of your estate, you would probably include your home, your personal assets, and your bank accounts. But your small business is also considered a part of your estate, even though you likely don’t want it to be treated the same way as the other property mentioned. There are a lot of decisions to be made, and an estate planning lawyer is the perfect person to consult.
There are several things you’ll want to consider, and a business and estate planning attorney can help you draw up documents that are legal and binding according to state laws. For example:
- Do you want the business to keep running after you pass away?
- If so, who should be in charge?
- What happens to your shares in a business?
- Do partners need to buy your family out of the business or does ownership transfer to one of these parties?
You will also want to have your lawyer explain the various tax implications that come along with your different options. It’s not unusual for a small business to implode after an owner’s death, not because there was no one to take over, but because the estate taxes just take so much that there’s not enough left to continue operations.
Advanced planning for your business can help avoid this type of huge tax burden. Specific sections of the tax codes have been designed to assist with the transition of businesses by limiting the taxes on heirs’ stock or to pay estate taxes over the course of 15 years. These two seemingly small things can make the difference between keeping the doors open or shutting down.
To get the most out of the tax codes that have been put into effect for folks like you, there is nothing quite as helpful as meeting with a qualified business and estate planning lawyer. Contact us today to schedule your Personal Strategy Session.