Starting or running your own business
Owning your own business can be both scary and exhilarating. You’ve no doubt worked hard and made many sacrifices -- or will do so.
It is therefore absolutely vital that what you’ve worked so hard for, is protected.
Small and medium-sized businesses face many risks if an owner, partner or key employee suddenly dies is disabled. There are also dangers if a partner or owner becomes embroiled in a divorce action.
If you are involved in your own business you MUST be able to satisfactorily answer these questions:
- If I -- or one of my partners -- were to become disabled and unable to work for any period of time, would the business be able to continue paying that person’s salary?
- Will our medical benefits be sufficient, or will we have to draw cash from the business to meet medical expenses?
- What happens if my partner gets divorced and his/her share of the company is included in the divorce settlement? Will cash be available to buy out his/her shareholding or will we be forced to sell the business or take in a new partner?
- If one of the partners suddenly dies, is there enough cash available to buy out his/her share and at what price?
- When I, or one of my partners, retires one day, what will happen to that share of the business? Is a buy-out plan in place?
- What happens if one of my key employees, with unique skills or contacts, dies unexpectedly? How will I keep the business going while I try to replace him or her?
- How will my family or partners meet the estate duty obligations of my estate when I die?
- Have I done all that is possible to minimise my personal tax liabilities?
- These are complicated, critical issues that must be dealt with and require the advice of a financial adviser and legal expert.
Business Solutions