facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause


Effective Business Succession


Business Succession Planning

You worked hard to develop a business, and now is time to enjoy the results. Many entrepreneurs spend years of focused effort building up a business, but then fail to consider how to make the transition to retirement. As part of our process we can work with you to create an effective business succession strategy.

Entrepreneurs can work to turn equity in the business into capital that can be used to fund retirement. We work with business owners to create tax-effective strategies taking into account capital within the business or corporation - such as paying yourself a salary while working and during retirement, arranging for heirs to take over your business in the event of retirement, disability or death. If the founder is nearing the end of his or her life, a well-planned strategy using life insurance can help successors transition into business owners. Upon death, either the business successors or the estate heirs face taxes on the business capital gains over $800,000 - with the tax-free amount potentially offset by any capital business losses the owner declared during his or her lifetime. Surplus working capital is also often trapped within the business - a tax advantaged strategy to withdraw these funds while alive and after death should be considered. Life insurance is one of the most efficient ways successors can purchase a deceased owners shares or to help heirs pay any taxes due upon death.

Smaller businesses may not need to pay estate taxes, but can still benefit from a plan that ensures a desired legacy is established for the business successors or to plan an inheritance that is distributed as desired to the heirs upon winding up the business upon death.

Call 604-636-1908