Assisting family run businesses with tax, accounting, and profitability, while helping the manage the interactions of working with family members.
Businesses with Family Members Have Unique Needs
Businesses with family members have the same needs of any privately held business. They need good accounting, tax, and financial reporting support. We can manage that for you, but the main difference in a family run business is the interaction. Ideally, a family business is designed to enrich the family wealth, but it can also endanger family interaction and strain relationships. We work with you to work toward keeping you financially strong and being a cohesive family unit.
Statistically, 70% of all family run businesses want to transition to the next generation, but only 30% successfully manage to do so. When it comes to a 3rd and 4th generation those success rates decrease even further. Our team can help you assess the potential to conduct a family succession and then work with your family members to develop a plan, timeline, and specific steps to work toward that goal.
Tax Planning in a Family Business
If your goal is to transition the business to the next generation, we need to discuss your financial needs. Do you want to gift as much of the business as possible to the next generation? If so, we may need more time to make that plan work. Then, we need to work with the current family leadership to prepare their retirement projections. In addition, there may need to be considerations for children who are not going to be involved in the business, but you want to ensure an equitable distribution of your wealth. It can get tricky.
Leadership Planning in a Family Business
Who should be in charge? A common mistake is not naming a leader and trying to be “fair” and having the children rule as a committee. That can be a dangerous decision that can lead to difficulty making choices, which may harm the business. Then, which child should take the lead or should an outside CEO be brought in to run the operations. We can help you make these assessments and explain the process to the incoming family who will be taking the business over.