Why do many business owners and concentrated shareholders neglect to complete a financial plan?
Owning a small business or a large concentrated stock position in a private or public company involves strategic planning. Further, one of the biggest challenges owners face is planning their succession and/or managing the tax implications of their decisions. We will help you review available options and provide guidance on the funding of your choices.
Selling concentrated stock is complex and there are many paths to liquidate holdings that achieve favorable tax outcomes. Whether it is extending out your timing until you have less taxable income, understanding when you hit your marginal tax bracket, or transferring shares to a trust for chartable gifting, we go over all the options with our clients so they are informed and can make decisions with confidence related to their closely-held or concentrated stock positions.
Whether transitioning your business to the next generation or selling your company to an outside third-party, owners must consider the impact on income, taxes and their financial security, before agreeing to transfer ownership to a family member or completing a sale to a third party. Normally, the sale involves capital, complex contracts, promissory notes and life insurance and there are ramifications on how these transactions are structured which could impact multiple generations and family relationships. Providing guidance during these times of stress is essential to helping our clients achieve their desired outcomes.