Protecting Your Family-Owned Business in Massachusetts
If you own a business, it is likely your primary source of income. In fact, most closely held companies are the product of years of hard work, dedication and innovation.
While you are healthy and well, your business should take steps to minimize taxes and risk. These two threats are common, yet in the rush of activity that goes with running a business many owners fail to plan.
Tax optimization of your business is something a well-advised owner will appreciate. Attorney McManus works with numerous local CPAs and business advisors and takes a team approach to tax optimization. This will involve a review of the way you conduct business and what sort of business entity is most appropriate. The most common two business entities with such advantages are corporations and limited liability companies [LLCs]. However, many more kinds of business entities exist and should not be overlooked. Everything from a simple partnership or sole proprietorship to complex limited liability partnerships and professional corporations. Each has its advantages and drawbacks. One fact remains in that every tax dollar you save is one more tax dollar you might otherwise invest in your business or employees.
When discussing legal protections for a business owner, some people will incorrectly believe that certain kinds of businesses cannot be sued. This is not true. Organizing as a particular sort of business will not prevent a lawsuit. However, with proper business entity selection, a business owner can limit their potential loss to a plaintiff in court. Other means of limiting business loss involve a review of your contracts, employee agreement, leasing arrangements and compliance issues. Attorney McManus and his team engage with business owners and a team of colleagues to review your options and identify the best course of action.
It is unfortunate when such a business owner becomes sick or dies and their business falls apart. Estate planning will reduce the risk of such an occurrence and improve your outcome. An often overlooked step in the estate planning process is making a connection between your family business and your estate plan. Trusts should be specifically drafted to accept stock of closely-held corporations and business entities.
Make an appointment today with Attorney McManus to review these important steps for protecting your family-owned business.