Several things make Liljenquist Law different from other law firms. First, in addition to being an attorney, I am also a Certified Public Accountant with extensive knowledge in business taxation. This allows me to consider your situation from multiple angles. For example, some legal decisions have tax ramifications that make them more or less advantageous. Second, I am a business owner myself. I have owned my CPA firm (Arrow Advisors SLP) since 2017 and I understand the unique challenges facing a business owner. Finally, I am adept at explaining complex topics to clients in a way that makes sense. I don’t “talk down” to clients and I feel it is important for clients to understand the reasoning for my advice. 

Without an estate plan your assets will pass according to state law. The laws of the state may not agree with your wishes. To be sure that your assets pass according to your wishes, an estate plan is necessary. 

Once you have decided what kind of business you want to start, the next step is to form the legal entity that will operate that business. A worthwhile attorney will explain the pros and cons of different entity choices so that you understand you options. Based on that decision, your attorney files forms with the state to officially create your entity. Finally, it is best practice to draft an operating agreement that dictates what happens in a dispute within the business as well as voting rights and management duties. This operating agreement is especially important when the business has more than one owner. 

You are not required to have a business succession plan, but it is a best practice to consider implementing one. Many business owners don’t think about a succession plan and when it comes to retirement, they leave value on the table because they have not considered how to pass on the assets. A business is not like real estate where you can simply list it for sale. Without a plan to transfer the knowledge necessary to run the business and fund the succession, you may not realize any economic value from your business upon your exit. A business succession plan helps you get value for the business you have built. 

A buy-sell agreement is a document signed by the owners of a business that dictates how shares of the company can be sold. Additionally, this agreement can provide a mechanism for receiving payment upon the death of an owner. Having a buy-sell agreement can be a useful succession planning tool. Some buy-sell agreements can be funded by life insurance  so that upon the death of an owner, a seamless purchase of shares can occur. When a business has multiple owners, a buy-sell agreement is critical to protect against disagreements, creditors, and disputes over selling shares. 

The threshold for paying the federal estate tax is over $13 million until the end of 2025. After that date, the exemption is set to “sunset” and be cut in half. Some states levy a state level estate tax that can be due at lower asset levels. Depending on the size and location of your assets, you may need to plan for the estate tax. As a CPA and attorney, I have a breadth of knowledge in this area and am able to advise clients on the options they have to limit the amount they pay in estate tax. 

The choice of entity plays a crucial role in determining the level of protection you receive from business lawsuits. For example, as a sole proprietor, you receive little to no protection. The proper entity, when the requisite formalities are followed, can insulate your personal assets from lawsuits filed against your business. 

Yes! I understand that an estate plan is a big investment. I provide payment options that are easier on your budget.