Helping You Plan For The Future
Small-business owners have long been considered the backbone of our economy. However, at some point, many small-business owners will be faced with a tough decision of what to do with their business in the event of their passing. This scenario raises many complications, both personal and financial.
At Gormley and Johnson Law Offices, PLC, our lawyers provide business owners with tailored plans and experienced guidance for the transference of their business. With offices in Howell and Fowlerville, we serve communities throughout the surrounding area, including Brighton, Lansing and East Lansing. In fact, we’re well-positioned to help clients across Michigan with their estate planning needs.
Focused On The Business — And The Individual
For business owners, whether they be contractors, plumbers, electricians or mom and pop operations, deciding to step away can be the hardest part. The second hardest question tends to involve the best way to do so.
Generally, some options involve:
- Selling the business outright: Whether it involves selling it to a family member, an employee or a third party, you can avoid certain estate tax implications by selling at fair market value.
- Transferring interest: Typically done through a buy-sell agreement, this option lets you control your interest until a certain predetermined event (your retirement or death, for example).
- Establishing a trust: A more complicated option that involves the creation of an irrevocable trust while retaining income payments.
- Creating a family limited partnership: A good idea if you plan on transferring interest to a family member.
These are only a few of the options available to you. Each avenue comes with its own set of advantages and drawbacks, including potential legal issues and tax complications. A capable attorney can work with you to develop a timeline and a plan that suits your needs and is tailored specifically to your business and situation.