You’re running your business. No time to do this, no time to do that but have you thought of everything you need to think of in protecting your business. Is your business protected from all perils and situations?
If you or your business partner had a major health issue how does the business continued to run if either can’t work?
If you or your partner wants to leave the business or retire are you able to do that and accommodate the other with their value in the business?
How about divorce how does that affect your business?
What’s is your legacy for the business, keep it a family, sale to an employee, sell to a third-party?
A lot of questions I know but have you considered any of these? Do you understand any of these situations and what it takes to address them? the following will give you some idea of what goes into making these types of decisions.
View this video, it provides an understanding of the many aspects of business preservation.
Here are some key terms and definitions related to this topic:
Tax planning -Tax planning is the analysis of a financial situation or plan from a tax perspective. The purpose of tax planning is to ensure tax efficiency. Reduction of tax liability and maximizing the ability to contribute to retirement plans are crucial for success.
Business Preservation – and protection is the first stage: Helping to ensure protection against unexpected pitfalls.
Risk Mitigation – The four types of risk mitigating strategies include risk avoidance, acceptance, transference, and limitation. Avoid: In general, risks should be avoided that involve a high probability impact for both financial loss and damage.
Business Continuity – the planning and preparation of a company to make sure it overcomes serious incidents or disasters and resumes its normal operations within a reasonably short period. Recovery: arrangements have to be made to recover or restore business functions that fail for some reason.
Best practices for business preservation is absolutely critical. Below are a few financial mechanisms that can prepare your business and preserve if any of the above situations take place.
Buy Sell Agreements – A buy and sell agreement is a legally binding contract used to reallocate a share of business if an owner dies or otherwise leaves the business. Also known as a buy-sell agreement, a buyout agreement, a business will, or a business prenup, buy and sell agreements are used by sole proprietorships, partnerships, and closed corporations to divide the business share or interest of a proprietor, partner, or shareholder.
Key Person Coverage – A company purchases a life insurance policy on its key employee(s), pays the premiums and is the beneficiary of the policy. If that person unexpectedly dies, the company receives the insurance payoff.
Risk Transference – a risk management and control strategy that involves the contractual shifting of a pure risk from one party to another. One example is the purchase of an insurance policy, by which a specified risk of loss is passed from the policyholder to the insurer.
Business Succession – A succession plan is a written document that provides for the continued operation of a business in the event that the owner—or a key member of the management team—leaves the company, is terminated, becomes incapacitated, retires, or dies.
Own Retirement – What about it? Is your business set-up to let you retire?
We go to school for 12 to 16 years and learn reading, writing and arithmetic; but never learn “HOW MONEY WORKS”!
You’re invited to a FREE workshop. This is NOT a sales seminar, but an educational setting. Bring your notepad, grab a bite to eat, and an educational setting. Bring your notepad, grab a bite to eat, and listen to the fundamental principles of money.
Learn how to GROW and PROTECT your money for college funding, retirement planning, or simply wealth accumulation with money you never know you had.
Monday, March 18th @ 6:30 pm – 8:30 pm
Blue Mesa Grill – 8200 Dallas Parkway, Plano, TX 75024
Contact to RSVP and to save you seat(s) (469) 443-8371
Lets face it we are surrounded by taxes. Taxes to the left of us (by left I mean more) and taxes to the right of us (by right I mean a little less?) and stuck in the middle with no end insight. You probably never stopped to think how many taxes there are? Well, thats right you could fill a well with all the taxes we have.
Fees & Tolls
Other Tax . . . You get the picture.
“Taxes are what we pay for civilized society.” The famous quote by US Supreme Court Justice Oliver Wendell Holmes Jr. is inscribed above the entrance to the headquarters of the Internal Revenue Service. Most people don’t have a clue what he meant, or in what context the statement was made.
At the time when Justice Holmes wrote that statement, the average tax rate in the Land of the Free was 3.5%
All taxes adversely affect ability to save. Since rich people save more than the poor, progressive rate of taxation reduces savings potentiality. This means low level of investment.
The biggest difference between the wealthy and the middle class is the time the wealthy spend thinking of ways to minimize their taxes. Learn how taxes can make an enormous impact on your retirement savings, and how to minimize that impact.
The difference between the rich and poor is both work hard for their money but wealthy people make their money work for them. Find money in their budget to invest and do it on a regular basis and potentially tax free. Building financial assets rather than liabilities.
There is one way to help offset your tax bill especially at the most critical time of your life and thats at retirement. You’re about to change how your income is generated and could be less than what you were bringing in while still working. You might say that my tax rate will come down — Do you know that for sure and if you do then tell me the next Super Bowl winner because you must have a crystal ball. With all the challenges we have today with deficits, social security uncertainty, walls (sorry), who knows what is next and let alone what our tax rates will be??? View this video for some thoughts. *Warning* – before engaging in this video be aware you may get a slight distaste in your mouth when you see the end results.