A Publication of WTVP

If you own a business, it’s likely your biggest investment. Unfortunately, it may be facing many of the same economic challenges now facing investments in the stock market and real estate. You may simply be trying to survive these challenges. But it’s critical to think about long-term considerations as well.

Save For Retirement
If most of your money is tied up in your business, retirement can be a challenge. So if you haven’t already set up a tax-advantaged retirement plan, consider setting one up this year. Keep in mind that if you have employees, generally, they must be allowed to participate in the plan, provided they work enough hours. Here are a few options:

Plan Your Exit
An exit strategy is a plan for passing on responsibility for running the company, transferring ownership and extracting your money. This requires planning well in advance of the transition. Here are the most common exit options:

A key issue with any buy-sell agreement is providing the buyer with a means of funding the purchase. Life or disability insurance often helps fulfill this need and can give rise to several tax and nontax issues and opportunities. One of the biggest advantages of life insurance as a funding method is that proceeds are generally excluded from the beneficiary’s taxable income. There are exceptions, however, so be sure to consult your tax advisor.