Plan For Your Succession in North Bethesda
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WARNING: Passing Your Business to a Family Member or Associate Can Be a Risky Proposition.
7 out of 10 family owned businesses will not survive the transfer of the business from one generation to another. Lack of planning and discomfort discussing topics such as aging, death, and financial affairs will more often than not result in loss of a business due to estate taxes, family discord, or some combination thereof.
If you want to assure that the business you worked so hard to build will be there to support future generations, you must clarify your plans for succession and finalize, as well as legalize your priorities.
Get professional advice for dealing with these key issues and more…
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(202) 841-9198
What will happen to your business?
Do you wish to keep it in the family, sell it to a third party or pass it on in some other manner? We can help you weigh the advantages and disadvantages of each of your options, as well as help you determine how the business can best provide for you as you enter your retirement years.
How can you minimize the tax burden upon transfer?
When businesses transfer ownership, taxes are a reality regardless of the relationship between the parties. Review your options with an expert in the field in order to make the decisions that will best support your family members and the business.
If you are not running the business, who is?
Ownership of the business and management of the business are often two distinctly separate entities. How will your retirement or death affect the day-to-day decision making of how the business is run? Will your children take active roles in the running the business, or will they exist as owners only? Clarifying your expectations in legal terms and making these decisions in advance will help ease the transition of ownership, as well as management, without further risk of detriment to the business as a whole.
Remember that inherited assets, such as family businesses, are often the cause of tremendous emotional strain and stress for individual family members. It is best to address any actions that might be seen as fair or unfair ahead of time, so that family members know what to expect and why you are making the decisions that you are making.
They may not realize, for instance, that the tax implications of inheriting a business might be more burden than they could financially handle or that decisions involving management vs. ownership have been taken into account.
Contact us about our Succession Planning Services to determine the value of your business, before restructuring your business, to review the tax consequences and tax projections of your actions, and to help you plan for retirement.
About Tia Cantrell, CPA
Tia Cantrell was born in the Republic of Georgia, in the seaside palm tree shaded city of Sokhumi on the Black Sea. She became a refugee at the age of 13. Her entire family was displaced as a result of a punitive post-Soviet war. Tia’s parents stayed back until the very last day and spent the rest of their lives hoping one day they would get to go back to the home they missed so much. Unfortunately, that’s one dream she has not been able to help them realize.
At 16, Tia became an exchange student and came to an American high school, completely mesmerized by the new culture. She went back to Georgia, and 5 years later her American host parents gave her an opportunity of a lifetime to come back to the US and start a new life in the States. That’s one gift that Tia can never fully repay them for. It was priceless to her.
Tia Cantrell entered college not quite sure of the path she would choose. That changed when Dr. Terrell entered her classroom. She was strong, vibrant, extremely competent with a knack to make the most complex topics easily understood. During her class she would tell stories from when she and her husband owned and operated a public accounting firm for 18 years. She shared that they would help clients from all walks of life. That was the spark that ignited the beginning of Tia’s lifelong love of accounting and finances, a critical trait that makes a true difference in delivering quality solutions to her clients to this day.
That lifelong love was also made possible by a handsome Tennessean she met along her journey. Many years later, with two little girls and their share of ups and downs, they are still going strong and Tia is confident that she wouldn’t change a thing.
In Tia’s own words:
As a young mom, and early in my career, I worked in government internal auditing, eventually transitioning to project/program management, leading large-scale financial software implementations, facilitating complex issue resolutions across teams, departments and organizations. (Boy! That’s a mouthful!)
That was all great but I couldn’t live without those numbers (it really is a curse!) so in a parallel path I supported two full-service CPA firms, true giants in their field, David Clampitt, CPA and CJ Babbit, CPA. I was truly fortunate to have had such amazing mentors. These two positions completely influenced my style and the way I approach problem resolution for my own business and individual clients today.
That is why North Bethesda CPA was born: to help me and the employees who share my vision to take a holistic view of your finances and tailor our services to deliver the best value to our clients. Make an appointment with us. You’ll learn for yourself how we can help. Click here to get started.
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