Business continuity planning is generally defined as developing and implementing a plan of business succession. Proper business continuation planning will determine who will take over your business if you pass away prematurely, become disabled or simply retire; as well as including other arrangements designed to minimize unnecessary income taxes, penalties, litigation, hassle and expense.
Ensuring business continuity for your company with a properly drafted agreement will provide more than just a mechanism for transferring the business ownership and leadership. It may save you many thousands of dollars in taxes as well as additional accounting and legal fees. In addition to saving on unnecessary costs, a properly executed business continuation plan will reduce delays and the frustration of IRS contests and additional litigation. If required, a well planned business continuity agreement will establish the value of a business for the purposes of federal estate and gift taxes. Planning for the future is the best answer for events that can potentially put a growing business in disarray and in some cases destroy the business.
Our professionals at Fredrick James provide valuable services using estate, personal and business succession tax planning techniques that will help you, your heirs, and business associates get through tough times. Our tailored planning addresses the financial and tax concerns which affect you personally, your business and other interested parties.Proper business continuity planning requires the consideration of many factors to properly devise and implement a business succession plan that will be successful. Since every organization is different, a business continuity plan is an absolute necessity due to the inherent complexities involved in the planning phase and the selection of the best fit candidate. Since succession planning is not an exact science, as many as 15 years may need to be allocated in a proper plan since training and mentoring will be required. For personal estate and tax reasons, this plan must be integrated with your business continuation plan.
Fredrick James Tax, Accounting & Consulting