Business,Continuation,Planning business, insurance Business Continuation Planning
As we all know to live in this world we have to perform some activity by which we can earn money. There are many activities by which we can earn money and meet the standards to live in this society. And from one of them is franchise. Franc Small offices have unique needs, and thatincludes document shredding. Designed with the smaller business inmind, the Dahle 20314 is a cross-cut shredder that offers Level 3security and brings you into compliance with federal regulations. The
https://accountingsolutionsltd.com/accounting-articles/business_continuation_planning/What is business continuation planning?Business continuation planning is the orderly transition of a business from one generation to the next. Why is this generally difficult? Taxes.Let’s explain this through a couple of scenarios: Let’s say that a business owner passes on, and no business continuation plan has either been put in place or begun. The Internal Revenue Service has guidelines established for the specific way that a business must be valued for estate tax purposes. Trust me, this isn’t terribly reasonable. For our example, let’s say that the entire estate is worth $5,000,000. This number is broken up as follows: $1,500,000 for the business, $500,000 in cash and securities, $200,000 in personal property and $2,800,000 in real estate. If the estate tax credit at the date of death is $2,000,000, then the estate would pay tax on $3,000,000 or roughly $1,650,000 in tax. If the business had been transferred to the next generation prior to the death, then the value of the estate would only be $3,500,000 and the tax would only be roughly $825,000. If in addition to the business being transferred, the real estate had been put into a trust, then there would be no estate taxes due at all. Do not try to face this on your own. [email protected] Additional Accounting Articles and information on my firm can be found at www.AccountingSolutionsLtd.com
Business,Continuation,Planning