If the owners intend to sell their businesses, we ensure they are aware of the small business capital gains tax concessions that if eligible allow a small business owner to sell a business for up to $4M tax free.
We provide tax planning via Griffin Accountants to the owners and their business and highlight to them opportunities to manage and grow their business.
See our FAQs in relation to Superannuation and Self Managed Super Funds (SMSFs) at www.griffinaccountants.com.au/smsf4u.
We advise on business succession planning:
The loss of a business partner in a business may have a detrimental effect on both the value and continuation of the business.
- Does your business represent a major asset?
- What would happen if your business partner were to die suddenly?
- Would their Estate want to sell the business to gets its share of the business?
- Or would the spouse of the deceased business partner want to work in the business?
Would you be happy to be forced to sell the business?
If not, would you be able to pay the deceased partner’s share at market value to satisfy the deceased estate?
If not, as part of a shareholder agreement, you need to consider how each surviving business partner would fund a payout of the estate of the deceased business partner.
Some or all of that funding could be from life/TPD insurances of the deceased business partner.
How this is structured, who pays for it etc so that the cost and transfer of ownership is tax effective is the expertise that we bring to the table for you.
Even when a business is owned by one family there is a need to consider succession planning.
For example, a business owned by one family may be the major asset for the parents and the father is the major principal in the business and intends bring one or more children into the business. What happens if the father dies? Will the children be able to buy the business to provide for the surviving mother’s retirement? If only one of the children is to run the business will they be able to pay out their other siblings’ shares of the business?
There are many opportunities for professionals to structure and save tax effectively to build their wealth.
How insurance (Life/TPD/Trauma/Income Protection) can be used to protect the lifestyle and opportunities (e.g. education, providing for retirement) they would like to provide for their family and loved ones. Ideally, insurance if needed should have been taken out earlier as its cost increases as you get older unless you have locked into a LEVEL premium.
Questions to ask yourself in relation to insurance are
- What would you do if you couldn’t work because of illness or injury?
- Could your family manage if you could not work?
- Could you maintain your lifestyle if something happened to you?
- If something happened to you, could your family maintain their lifestyle without you?
See our FAQs in relation to Superannuation and Self Managed Super Funds (SMSFs) at www.griffinaccountants.com.au/smsf4u. We can offer extremely competitive borrowing rates and flexible borrowing facilities when borrowing to buy a house or investment property or refinancing an existing loan.
If you would like more information, please Contact Us.