As a small business owner, making sure your assets are managed properly is of key importance to your ongoing financial stability. Passing on the fruits of your labor to your family after you pass on can provide you with greater peace of mind. In many cases, working with an experienced Katy estate planning lawyer can help you make the right decisions for your business and your family. Here are some key points to remember when setting up an estate plan for your Texas business holdings.
Minimizing the Tax Burden
A well-thought-out and comprehensive estate plan can reduce the amount of tax liability your beneficiaries will face when distributing your assets. This can increase the value of these assets and can provide your family with the means to maintain a comfortable lifestyle. In addition, the added funds may be used to continue your business operations to provide ongoing income for your beneficiaries.
Structuring Your Small Business
Retaining the services of a professional Katy real estate law firm can provide you with added guidance in setting up your estate plan. Depending on the size of your company and the number of shareholders involved in its management, your small business may be structured in one of the following ways:
- A sole proprietorship, in which you are the only owner and hold full control over assets, liabilities and organizational decisions
- Partnerships that allow joint or multiple owners to exercise managerial control over the business
- S corporations, which provide you with the tax advantages of a personally held asset while allowing for business profits and losses
- Limited liability corporations that combine the legal protections of corporations with the streamlined tax liabilities of a partnership
Each of these structures offers certain advantages for small business owners interested in preserving their estate and protecting their assets. Working with a firm that specializes in business law can help you determine which of these choices is right for you and your estate planning needs.
If you operate as a partnership in the state of Texas, a buy-sell agreement may allow your partners or shareholders to purchase your interest in your small business in the event of your death. These arrangements can reduce the paperwork needed to resolve ownership issues and can provide your heirs with the funds they need to manage expenses and to live comfortably during this difficult time.
The Sugar Land small business attorney team at The Law Office of Henry Jakob can provide you with the information and guidance you need to set up a workable estate plan and to manage all your legal needs. Call us today at 832.879.2244 to set up your initial appointment and to begin the estate planning process with us.