[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.amorusolaw.com\/blog\/small-business-owner-dont-hesitate-on-estate-plan-new-york-ny-white-plains-ny\/#BlogPosting","mainEntityOfPage":"https:\/\/www.amorusolaw.com\/blog\/small-business-owner-dont-hesitate-on-estate-plan-new-york-ny-white-plains-ny\/","headline":"Small Business Owner? Don\u2019t Hesitate on Estate Plan","name":"Small Business Owner? Don\u2019t Hesitate on Estate Plan","description":"So, what happens to your business after you are gone? You have put a life\u2019s work into developing your vision and building a successful business. What do you need now? An estate plan protects that life\u2019s work, according to Bakersfield.com in “Estate planning tips for small business owners“. It makes sense. You\u2019ve likely spent decades […]","datePublished":"2019-08-29","dateModified":"2023-07-29","author":{"@type":"Person","@id":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/#Person","name":"Amoruso & Amoruso, LLP","url":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/","identifier":5,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Amoruso & Amoruso, LLP","logo":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","width":0,"height":0}},"image":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b0240a4c9ba44-scaled.jpg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b0240a4c9ba44-scaled.jpg","height":1707,"width":2560},"url":"https:\/\/www.amorusolaw.com\/blog\/small-business-owner-dont-hesitate-on-estate-plan-new-york-ny-white-plains-ny\/","about":["Business Succession","Estate Planning","Family Business","Life Insurance","Small Business"],"wordCount":574,"keywords":["Business Succession","Estate Planning","Family Business","Life Insurance","Small Business"],"articleBody":"So, what happens to your business after you are gone?You have put a life\u2019s work into developing your vision and building a successful business. What do you need now? An estate plan protects that life\u2019s work, according to Bakersfield.com in “Estate planning tips for small business owners“.It makes sense. You\u2019ve likely spent decades building your business throughout your working life. You\u2019re proud of what you have accomplished, and you should be. You should then protect it with a well thought out plan. Your estate planning attorney will be able to help you design a two-pronged plan for your business and your personal life. For business owners, these two are intertwined.Can you avoid taxes? Reviewing your personal and business assets as part of an estate plan is the best way to minimize the tax exposure of your estate and facilitate an organized sale or succession plan for your business. You can\u2019t completely avoid taxes, but good planning will help them from being excessive.There are a number of IRS sections that can help, and your estate planning attorney will know them. For example, Section 6166 gives your loved ones more time to pay the tax, by paying in ten annual installments.\u00a0Section 303 lets your family redeem stock with few tax penalties. Talk with your attorney and CPA to find out if your business is eligible for either of these strategies. Create a plan and talk about it in detail with survivors to help them navigate the transition.Do you have a buy-sell agreement in place? This is critical, if more than one person owns the business. The buy-sell agreement dictates how the partnership or LLC is distributed upon the death or incapacity of one of the owners. Without one, family members may be stuck owning a company they don\u2019t want or know nothing about. Alternatively, your former partners may find themselves partnered with people with whom they never intended to go into business.The buy-sell agreement creates a plan so, when an owner passes, the shares of the company must be bought out by the other owners at a fair market price. The agreement can even establish a sale price, so family members will know exactly what they can expect to receive from the sale. In addition, a buy-sell agreement can be used to block certain individuals from taking a role in the business. For many family businesses, that\u2019s enough of a reason to make sure to have a buy-sell agreement.How are life insurance policies used by small business owners? Maybe you want the business to die with you. Some small businesses provide a stable income for the owner, but there\u2019s no plan for the business to be passed to another family member or to survive the passing of the owner. If that is your situation, and you want your family to have income, you\u2019ll need a life insurance policy.A life insurance policy can also be used to help partners with the capital they\u2019ll need to purchase your shares, if that is how your buy-sell agreement has been set up.As a small business owner and a family breadwinner, you want to be sure your family and your business are prepared for your passing.Reference: Bakersfield.com (July 15, 2019) “Estate planning tips for small business owners”For more information on asset preservation and estate planning, please visit my estate planning website."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog","item":"https:\/\/www.amorusolaw.com\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Small Business Owner? 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