Tax season is quickly approaching, and business owners will need to get organized a little earlier this year. Recent legislative actions, made an in effort to cut down on both tax fraud and identity theft, have changed the upcoming W-2 and 1099-MISC filing deadlines.
As I often tell my clients, selling your business is a process, not an event. Determining the right time to sell, and finding the right buyer to sell to, can be stressful. There are tax and legal issues to consider, and negotiations can be complex and lengthy. However, as is true for most major business (and life) decisions, preparing as much as possible ahead of time can help you feel more confident, smooth the transaction process, and increase your chances of realizing a higher return on your life’s work.
Retirement is something we all think about, but when it comes to the specifics - how much retirement income we'll need, and where that income will come from - many people feel uncertain and underprepared.
The best way to prepare for retirement is to take a proactive approach, and start planning as early as possible. In a webinar that I hosted last week, I discussed critical retirement planning steps, and why it's so important to start now. For those of you who missed it, I've outlined the top 4 steps you should be taking to prepare for your retirement.
Did you know that if your estate is large enough, up to 40% of your life insurance death benefits can be lost to federal estate tax?
Although life insurance proceeds are not subject to income tax, they are included in your taxable estate, and therefore can be subject to estate tax. To prevent the taxation of life insurance proceeds, many of our clients choose to purchase their life insurance policy using an Irrevocable Life Insurance Trust (ILIT), or gift their existing policy to an ILIT.
In recent years, I've seen a renewed interest in "combo" retirement plans. Although not a new retirement plan design, the “combo plan” has become a popular way for higher-income business owners to significantly boost their retirement savings, while reducing taxes along the way.
I often meet with clients who have successfully managed their business for many years, but have no real plan when it comes to cashing in their life's work. As a business owner, you're focused on day-to-day profitability - and rightly so - but it's equally important to have an exit strategy plan that will allow you to realize the value of your investment.
