Choice of Entity: Good tax planning often brings into play the choice of the appropriate business entity for real estate, other investment properties, or an operating business. The right choice of entity can achieve efficiencies in operating and administering the assets or business and facilitate the eventual transfer of ownership of entity in the manner best suiting the owner’s desires.
The lawyers at Brier & Ganz LLP have helped numerous clients select the type of organizational entity that best suits their needs. We have commonly assisted with setting up those entities. We commonly form corporations (regular and S corporations), general and limited partnerships, limited liability partnerships and limited liability companies (LLCs) in Massachusetts, Delaware and other jurisdictions. Once the business is up and running, we can also assist with many of its ongoing legal matters, including tax planning.
Business Succession Planning is the process of protecting the owners of a business by planning for the incapacity or death of an owner. A comprehensive business succession plan should address (i) the identity of the successor manager(s) of the business, (ii) the identity of the successor owner(s) of the business, and (iii) treatment of the interest of a departing owner, whether the departure is due to retirement, disability or death. Perhaps most importantly, by identifying permissible successor owners, a good plan can seek to exclude other parties – like creditors and other outsiders – from becoming a successor owner.
In many cases, the key document in implementing a business succession plan is a well-designed buy-sell agreement. Such an agreement can provide for the purchase and sale of the owner’s shares in the business upon any of the designated triggering events – death, disability, retirement, or (in some cases) divorce. The buyer might be the co-owners, employees, children or spouse, or the company itself. The purchase and sale might be mandatory on both parties or it might provide an option to buy or sell on one side. It can set a fixed price, a formula price, or a procedure for setting the price, and it can provide the payment terms. It is often paired with life insurance to provide a source of funds for a buyout. This document can entail significant tax implications, which need to be carefully considered in relation to the substantive planning.
Very often, a small business owner's largest asset is the business itself. Unfortunately, many owners fail to put plans in place which will protect their business and their family in the event of the retirement, disability or death. The attorneys at Brier & Ganz LLP can help you stand clear of these hazards and provide the stability, continuity and security you need and your family deserve.