There are many family owned and operated businesses out there. For many of them there will come a time when you, the owner, want to retire. The choice to retire is not the same when you own a business. At a job, you have a retirement plan set up, you simply put in your notice and you are done. When you are an owner, it is a different story. You have some options to consider and this is where a Reno accountant can help.
You need to know if you will have enough money to retire, and you need to consider what will happen to the business once you are gone. Do you want to sell it or would you rather keep it in the family? If you decide to keep it in the family, then succession planning is needed. The majority of second-generation businesses fail within a couple years. The best way to go about planning the transition is to work with a Reno accountant.
When it comes to family, emotions run high. Depending on the family construction, it may be an easy transition. However, in some cases there may be multiple people who feel they should be considered. When discussing finances in the family there is usually tension. The best way to relieve this tension is to make sure everybody, or the majority of the people, are happy with the final decision.
A Reno accountant will help interview relatives to figure out what they want. You do not want your business to be a burden on anyone so, it is necessary to ask questions. One thing that you need to consider is who is going to run your organization. You may choose to separate the business among a certain number of people, but have only one of them actually run it.
Then there is that three-letter word that has to be considered, tax. There will be some sort of taxes involved in the move. A Reno accountant will help you figure out how to make the transition with the smallest amount of financial pressures. They will also help you look at the long-term tax situation and determine the best ways to limit what everybody is going to owe.
In addition, before your Reno accountant can actually come up with a plan for your business’ future, they will do a valuation. Knowing the value of the company will help to determine how to divide the business.
Due to the complexity of passing a business to the next generation, you need to seek help. An experienced Reno accountant will help you sort through the options and help you come to the best conclusion possible.