The joy of owning your own business, can sometimes be offset by the overwhelming challenges of trying to balance growing your business, and at the same time invest in providing protection and benefits for you and your family, and for any employees that you might wish to cover as well.

It is hard to set aside the time to tackle these issues, when besides taking the time to run your business, you also have the difficult task of just trying to keep up with rapid and overwhelming changes we face in technology, governmental and industry regulations, changes in the workforce demographics, etc Take a couple of minutes to watch this  Business Video

As Business Owners, we tend to put on the back burner these three very important issues.  They are:

            1.  Business Continuation Planning. 
            2.  Retirement Planning while building and running the business
            3.  Business Exit Strategy Planning

The following gives more detailed information on these topics.  In addition, each section has a "CLICK HERE" link which will take you to another section which contains even more detailed information.  As an example, if you wanted to see a schematic flow chart of a "Buy-Sell" agreement for an LLC, you would click the "CLICK HERE" link under the next section, and then on that page, click on the link for the PDF file for LLC Buy-Sell agreements.

1.  What is our Business Continuation Plans?  THIS IS IMPORTANT 

Most small and medium size business owners think they have a business continuation plan in place, but forgot that either 1) They forgot to write the plan down, so they are the only ones that know what the plan is, or 2) They forgot to fund the mechanisms needed to execute the plan.  You might check out "Taking Care of Business".

Your business continuation plan should address at least these two questions

A.  What will happen to my family, and/or business - If I become disabled, either short or long term?  How will I pay bills?  How will my company stay open?

B.  What will happen to my family, and/or business - If I die tomorrow?  Do you have buy-sell agreements in place?  Are the plans fully funded?

Wether you are a sole proprietor, a partnership, a  C or S corporation, or an LLC, you should click the following link.  For more information on these issues and possible solutions, CLICK HERE.  We can help you with any of your disability insurance, insurance for your buy-sell agreements, or your key-man insurance needs.   Remember, we are here, to help you in any way we can.




2.  What Retirement Plan is best for my company - for ME?  THIS IS IMPORTANT 

For many business owners, their business is their retirement plan.  If this is you please see "Investing in Your Business",  "Your Retirement, Your Business", and  for more information that you might want to considerAnother very good resource also is this 2006 Tax Facts Sheet.

There are Three main opportunities for you, and or your employees to help fund your future retirement needs:

1.  Defined Contribution Plans (401K, SEP, SIMPLE)
2.  Defined Benefit Plans (Pension and Profit Sharing Plans)
3.  Deferred Compensation Plans (Split Dollar Life, SERPS)
     Are they compatible with the new 409(a) rules?

For more information on these issues and possible solutions, CLICK HERE.  If you have existing plans, we can help review them for compliance with the new regulations.  If you are not happy with your current plan, we can take over and make appropriate adjustments in either the products available, or the quality of the service you are currently receiving.  Or, if you need a plan, we can work with you to create either a complete turn-key system, or work with a third party administrator (TPA).  Remember, we are here to help you, in any way we can.




3.  What is my Exit Strategy?  THIS IS IMPORTANT  

Many owners have the desire to pass on their business to other family members.  As you can see from the chart below, less than half get their wish.  The majority, have the delusion that when it comes time to retire, that some stranger will magically ride into town, immediately fall in love with their business, and offer them millions and millions of dollars to buy them out.

Unfortunately, in the real world it does not often work out that way.  Some considerations you will have are:

1.  Do I want relatives to take over (buy me out), and do they want to buy into my business.
2.  Will I have to sell to a competitor?
3.  What is the fair market value?  At a value the IRS will accept?
4.  Will I have to utilize some form of deferred compensation plans, ESOP, etc.
5.  Do I just create a large Deferred compensation, and collect a lump sum upon retirement?
6.  Do I create a "Salary Continuation" (not subject to SSI taxes)?

For more information on these issues and possible solutions, CLICK HERE.

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Check the background of this financial professional on FINRA's BrokerCheck