Taxes Make Exiting Your Family-Owned Business Difficult

The epitome of the American dream is to be a family-oriented entrepreneur who has created a successful business. Your company is not only a source of pride, but also the basis for your wealth in retirement and a legacy to leave your family.

There is often a wrinkle in this dream that occurs when you exit your business. And yes, you will eventually exit your business, whether after a retirement party … or in a gurney. The wrinkle is that unanticipated federal and state taxes can make your exit messy and even wipe out your business’s equity. Key to a preventative planning process is to secure good professional advice, and to use caution in exiting. Otherwise your dream may morph into a nightmare.