You’ve put in your blood, sweat, and tears to build your business. At some point, it’s time to pass on the torch.
Let’s start with the most basic question – who will replace you? It could be one or more of your children, or maybe you have partners, and they’ll continue without you. Perhaps you’re getting bought out – or maybe you’re selling to an employee. How you pass along your business is very much dependent on who you’re passing it on to.
Can you really just up and disappear? Has your successor been trained, or are you throwing him/her into the deep end? In many cases, the departing owner/manager will slowly hand off more and more responsibilities. But the new owner/manager often has their own ideas, they want to change a few things, do it their own way. How do you protect your interests, without stifling theirs?
Can your successor afford to buy you out in one lump sum, or will there be some ongoing arrangement? Perhaps you’re being bought out over a number of years – how do we ensure you will get paid? Or if you are passing the business along to one of your children, it might not be possible for your other children’s shares to be equal, but let’s at least try to find a way to make it fair.
Depending on the way your business is set up and how you structure the sale, even with the recent tax cut you could lose more than half if you’ live in North Dakota, and close toy three-quarters if you and your business are both in Minnesota. Or you could talk to us, we can help you navigate the tax landscape to get the best deal for you – in some extreme cases we can even get that tax bill down to zero.
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