Planning for the future may be even more important for business owners. Arkansas entrepreneurs may not realize the importance of estate planning and how it can affect their businesses after they’re deceased. It just might be that many of a business owner’s assets is in the person’s company, and plans should be in place for the business to either pass to a family member or members or to be sold at a fair market price.
For those operating an owner-dependent business, estate planning focuses on the fact that the business will more than likely close its doors when the owner passes away. The goal, then, is to aim for the best income possible annually, allowing the owner to move profits into a retirement savings plan as income. Many lawyers, doctors, engineers, architects and other service providers choose this type of business model.
The owner is usually hands on in an owner-dependent business. The owner is a jack of all trades when it comes to bookkeeping, marketing and decision-making. Estate plans should indicate what should happen to dissolve the business when the owner dies. This is essential for tax purposes and to limit the burden imposed upon loved ones.
There are many facets to estate planning. There is much that business owners need to be aware of when it comes to their last wishes regarding their businesses. An Arkansas attorney may be able to provide the facts on estate planning for business owners and provide legal information about which an entrepreneurial client may not have even have been aware.