J.K. Lasser's Small Business Taxes 2013: Your Complete Guide to a Better Bottom Line

CHAPTER 31

Succession Planning

Alert

At the time this book was printed, Congress had not extended numerous breaks for 2012 that had expired at the end of 2011. Check the online supplement in February 2013 at www.jklasser.com or www.barbaraweltman.com to see whether these breaks apply for 2012 returns.

What happens to your business when you retire or die? Have you made any decisions about whether to sell your interest, pass it on to children, or make other arrangements? The plans you make will have practical and tax implications for you, your family, and your business.

Succession planning is a complex and ongoing process involving both practical (business) and legal concerns. This chapter is designed to acquaint you with some of the issues you’ll need to address in succession planning; it does not address every issue that may apply to you. Work with a knowledgeable advisor to help you structure, monitor, and modify your succession plans. In this chapter you will learn about:

• Exit strategies
• Financing options to fund buyouts
• Consulting agreements
• Estate planning concerns