Protection For Business Owners

Who Will Run Your Business?

Do you want your family business to continue after you retire, become incapacitated, or die? If so, the odds are against you. Only about one in four family businesses survive into the second generation. A successful transition to the third generation is just as unlikely, with only one in eighteen family businesses making it that far.

Business succession planning is about increasing those odds. One of the biggest causes of failure is treating a business like any other asset at estate planning time. Dividing up the shares of your business equally among your children can turn a business with one manager into a business with several managers. That might work well for a large public company like Wal-Mart, but it probably won't work for you.

The way in which your business changes hands can also have a variety of tax consequences – income taxes, capital gains taxes, estate taxes, and gift taxes. Some business succession strategies take time to implement. Start planning today to ensure a smooth, tax-efficient transition of your business to the next generation.

Are You Protected From Your Business Liaibilities?

Selecting the right structure for your business is about more than just what is good for your business – it's also about what is good for you. The wrong business form can expose you to unnecessary taxes and potential liability. Having your business sued is stressful enough. You shouldn't also have to worry about losing your home or other personal assets.

One Final Note

You have finished reading about some of the risks faced by business owners. You shouldn't stop with this page, though. The other Planning and Protection pages describe risks that you, or someone you know, may also face. In particular, the Planning and Protection page For Couples and Individuals should be read by everyone.