72% of small businesses don’t have a succession plan, reports Isaac O’Bannon, Managing editor of the CPA Practice Advisor. What’s more, O’Bannon found, 87% of small business owners were unaware that there are documents that can be created to specifically protect their businesses.
“Meanwhile, the new tax bill changes the rules for pass-through entities (Limited Liability Corporations, sole proprietorships, partnerships, and S-Corporations), which make up 90% of all businesses in the U.S.,” the law firm Petefish reminds us.
Even more startling is a statistic released by CNBC showing that some 10 million small business owners are planning to sell or close their businesses over the coming ten years, yet most of those have no succession or exit plan in place in order to cash out for retirement.
And, yes, the new tax law roughly doubles the federal estate tax exemption, Eleanor Laise writes in Kiplinger. But, far from meaning that you should “take your estate planner off speed dial”, she says, be aware that the law doesn’t address creditor protection and maximizing bequests.
At Geyer Law, we do know. That’s why, working in cooperation with our clients’ tax, insurance, and financial planning advisors, we counsel on business matters, including:
- choice of business entity
- internal corporate documents
- liability issues
- succession planning
Don’t make the mistake of being part of that 72% statistic!