Estate Planning for Small Business Owners in Florida
Estate planning involves having proper plans in place that will determine how your business will run, and whether or not the estate taxes will be minimized upon the death of the owner. For small business owners, their business is usually the largest asset that they have.
Most of the time with small businesses, after the death of the owner, the business does not survive. In most situations, the business is sold to another entity or closed. The biggest reasons for this are failure to provide a clear plan for business continuation, and poor management of taxes and cash flow. Therefore, it is of utmost importance that they plan ahead for the management of the business in the future.
Given below are certain questions that small business owners must discuss with estate planning lawyers.
How will the business be controlled and managed?
Small business owners must take into consideration the control and management of the business they wish to run. In the long run, this will provide marketability and ensure that the business survives even under difficult conditions.
If a business has multiple owners, then the estate planning counsel will advise that there should be a written agreement between the owners. This will ensure that situations that involve buyouts go smoothly and are in the interests of all members.
An experienced attorney will be able to exercise the Powers of Attorney and appoint someone capable to run the business.
How will the members of the family and the employees be affected?
If a situation arises where the business needs to be sold, then it should be discussed how exactly it will be run until the date of sale. Usually, family members and employees depend upon the owner for financial security, and if the business is going to be sold, then all plans following the sale will have to be communicated regularly to the members and employees.
If the lawyer does provide information at the correct time, then everyone will be better equipped to handle the changes.
How do the estate planning documents affect small business owners?
Estate planning attorneys should encourage their clients, especially small business owners, to create a will and estate planning documents. If there is a will, then after the death of the owner, the judge in charge of probate will appoint a person to be in charge of business operations until it is sold.
During this time, the probate court will have administrative control, but this is time-consuming and family members might not get any financial benefit. However, if there is a trust in place then one can determine who runs the business. If there are no estate planning documents present, then the Florida statutes will determine how the business will be managed and sold after the death of the owner.
Contact an Experienced Estate & Business Planning Attorney Today
Tampa estate planning attorney David Toback is an experienced estate planning and business planning attorney that will be able to advise you of your best options for protecting your business and create the documents to ensure your wishes are followed. Contact us today to schedule a consultation.