CHAPTER SIX Business Owners and Wealth Protection
PLANNING YOUR BUSINESS! How is Your Business Structured?
Most small businesses are defined as a sole proprietorship, partnership, C-Corporation, Sub S Corporation, or Limited Liability Company (LLC) and basically are managed and operated by members of a family or the owners of the corporation. This can also describe a professional business, such as medical doctors and attorneys. In the family business, decisions are generally made by considering family priorities and needs as well as business priorities. There are many priorities that a family business must consider: • Most important is Cash Flow • Lazy inventory • A system of control to protect the business from employee theft. • Key person(s) "golden handcuffs"
• Asset protection • Frivolous lawsuits
• Lawsuits that are not frivolous • Property & Casualty Insurance • Self-insured to have the highest reasonable deductibles. • Control marketing expenses & advertising. • The right fits your marketing (one can waste thousands of dollars) • Protecting the owners from becoming a "work-a-holic"! • Succession transfer – Continuity – Cancellation of Debts
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