<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=1602061480087256&amp;ev=PageView&amp;noscript=1">

R&R Insurance Blog

What Will it Cost to Sell the Family Business to Your Family?

Posted by Pat Driscoll

Business-Owner_Steve-ParrishNationally known attorney Steve Parrish, recently released an article on Forbes.com describing the dangers of selling your family business back to your family – and what it could potentially cost you. Like any sale of a business, the devil is in the details. What looks like a straightforward sale to a child can create unforeseen taxes and can spin the family into acrimony and discord.

 

In the article, Steve addresses the potential tax traps associated with an intra-family sale. One of the most crucial elements you, as a business owner, face is the ultimate distribution of your business. Will it be sold to a third party or family member, or will it be passed to a family member via a will or trust?

 

Typically, your business is the focal point or hub of the estate. You may have a somewhat distorted view of how the IRS would value it. At R&R Insurance, we offer a Business Valuation that will provide an analysis of the 5 methods most used by the IRS. This is a complimentary service provided to you.

 

Many businesses have not explored a Business Continuation Agreement. We also provide a complimentary service where a group of attorneys and CPAs will thoroughly review any documents you have. This same group of advisers will then put together the Business Valuation Plan.

 

In addition, R&R will provide you with an analysis of any insurance programs (both business and personal) that may support your continuation plan. Is the coverage set-up properly to avoid any unnecessary taxes? Is it performing up to the expectations from when it was purchased? These are all questions we can answer.

 

Please feel free to contact Pat or Tom Driscoll if you have any questions.

Topics: Business Insurance