Small Business Succession

Account Service

How will Small Business Succession help me?

When it comes to small business succession, being proactive and having a plan for your business and family can make all the difference. At DeFreitas and Minsky LLP we understand that retirement isn’t easy, especially when your family is tied to the business. When you own the business it isn’t just a matter of not wanting to go into the office anymore. Working with family, specifically dealing with the deep-rooted relationships and obligations, complicates the transition. You have to be ready to discuss the harder topics like aging, death and financial affairs, in order to maintain control and profitability in your business.

Comfortable or not, succession planning should be a priority for any family business considering that more than seven out of ten family-owned businesses fail to survive the transition from founder to second generation.

The In’s and Out’s of Small Business Succession

There are many reasons to have a well-established plan in place ahead of time — but let’s take a look at two of the big ones:

Taxes

You don’t want to leave your family to deal with your outstanding finances. Upon an owner’s death, estate taxes may be due. These taxes are due nine months after the date of the death. The payment for these taxes is in cash, and estate taxes may include additional costs including probate, final expenses and additional fees.

Business Value

With the absence of a small business succession plan, what happens to your business in the interim may greatly harm its value. Think about an accounting company that does not have a successor. As the family of the owner tries to work through their affairs, clients are not getting the service for which they originally paid. The business your family worked so hard to build is slipping the cracks.

Developing and implementing a well-designed small business succession plan is essential to the survival of a family business from one generation to the next.

We help you with these key issues:

Who will take ownership? Are you going to keep the business in the family? Will you sell it to a third party? We help you understand the pros and cons of each option.
Who’s going to run the business when you’re gone? Management and ownership are not the same. You may decide to transfer management of your business to just one of your children but transfer equal shares of business ownership to all your children, whether they’re actively involved in the business or not.
Making it fair. Transferring family ownership often adds a tremendous amount of stress to individual family members. We talk with each of the family members to ensure that they feel they a getting an equitable and fair share of the pie.

Plan for the future, know your options, and request a Free Consultation below.

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One of our certified public Accountants

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Testimonial

WHAT OUR CLIENTS ARE SAYING!

DeFreitas & Minsky maintains high standards, produces detailed information and gets involved with our company so they can understand the operation on a more personal level. The information they provide is always accurate and current. We have been with them for more than 30 years!

4 years agoThis is my second year filing my taxes with DeFreitas & Minsky. I was referred by a friend. Honestly, It’s a blessing sent. Everyone there is professional and knowledgeable about tax codes. They even keep me abreast via email whenever there’s a new tax law and what it entails. I feel safe and sound when doing business with them.

True professionals and attentive to all of my needs. Manny, Melissa, and Michael are all super helpful. They took the time to help me with my taxes, financial planning, and estate tax needs. I highly recommend them.

We’ve been working with Manny for the last 10 years. Whenever we have a question he’s there and if he’s in a meeting during Tax Season (it happens), Jay is always there. Thank you Gentlemen.

Frequently Ask Questions.

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Why is succession planning important for small businesses?

Succession planning ensures the continuity of your business and prepares for a smooth transition in case of retirement, disability, or death.

When should a small business start thinking about succession planning?

We provide guidance on joint versus separate filings, maximizing deductions, and navigating tax laws specific to same-sex couples.

What are the key steps in succession planning?

We provide guidance on joint versus separate filings, maximizing deductions, and navigating tax laws specific to same-sex couples.

How can you assist in developing a succession plan?

We provide guidance on joint versus separate filings, maximizing deductions, and navigating tax laws specific to same-sex couples.

What happens if there is no succession plan in place?

Without a plan, the business may face uncertainty, potential conflicts among stakeholders, and risks to its continued operation.

How do we choose the right successor?

Consider factors like skills, experience, leadership qualities, and alignment with the business’s vision and values.

What are the tax implications of succession planning?

Tax implications can include estate taxes, capital gains taxes, and transfer taxes, which should be carefully managed in the plan.

Can a family member automatically take over the business?

While family members are common successors, it's important to evaluate their suitability and willingness, and to formalize the transition through proper planning.

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Call Us

516.689.1515

Headquarter

30 Jericho Executive Plaza Suite 500W, Jericho, NY 11753

Email Us

Info@dmcpallp.com

Account Service