Q: If I own a business, what should I have to preserve my business for future generations?
A: In order to keep a business running after the death of an owner, a complete business succession plan must be in place. An estate plan alone is usually sufficient for a person’s passing. However, if a business is involved, the business needs its own plan to survive.
Q: Because the estate tax amounts change so radically in the near future, how should we plan for the contingencies ahead?
A: The future is somewhat uncertain for those in business. The estate tax exemption may stay at $1,000,000 or it may go up to $3,500,000. Any business owner can benefit from having an active estate and business succession plan in place that actively deals with the contingencies ahead.
Q: I am applying for a mortgage. However, since I am a small business, my tax documents indicate insufficient income to support the debt. Is there anyway I can legitimately show an income that can support the debt?
A: There is a way that small business owners can show a more suitable income for debt maintenance. Restating your income to a bank is a legitimate way to show that not only is your business healthy, it is able to support a debt obligation as well.
By: Basi & Basi at the Center for Financial, Legal and Tax Planning for Transworld M&A Advisors