Succession Planning

Succession Planning

by Adriane B. Miller

Small, closely-held companies must confront this thorny issue.

John R. Beever doesn’t know how his business would function if he fell out of an airplane today–but he’s prodding his family and key managers to discuss it.

Mr. Beever, 59, runs family-owned John Dittmar & Sons, Inc., a Baltimore custom woodwork manufacturer that his great-grandfather started in 1876.

But discussing the future raises difficult questions. Mr. Beever’s two sons, Geoffrey and John C. are in their 30s and vice presidents of the firm. Both are enthusiastic about the business, both are bright. Both want to succeed their father. More…

How To Use Your Business To Split Income Among Family Members

How To Use Your Business To Split Income Among Family Members

by Bernard Fruchtman, Esq.

With the tax rates running as high as 39.6%, income shifting to family members in lower tax brackets is a valuable tax saving technique.

One technique a business owner can use to shift income to lower tax bracket family members is a sale and leaseback.

Here’s how it works:

Your business sells its equipment to your children and immediately leases it back from them. Your children own the equipment but your business continues to use it. More…