Succession Planning
Every owner leaves their business eventually. Planning ahead protects its value, minimizes taxes and gives your family, partners and employees certainty about what happens next.
How Nelson & Associates handles Succession Planning
A good succession plan answers four questions: who will run the business, who will own it, how will the transfer be funded and how will it be taxed. We help owners compare options such as gifting shares to the next generation, selling to partners under a buy-sell agreement, selling to employees or selling to an outside buyer.
We work alongside your attorney, financial adviser and insurance professional to coordinate valuations, buy-sell agreements, estate planning and the income and gift tax consequences. Starting several years before you plan to step back gives you the most options.
Who this is for
- Family business owners planning for the next generation
- Partners who need a buy-sell agreement
- Owners considering a sale in the next few years
- Businesses with key-person risk
- Owners combining estate planning with business transfer
- International families with business interests in several countries
Everything covered in our Succession Planning service
- Succession goals and options assessment
- Tax comparison of gift, sale and installment structures
- Buy-sell agreement funding review
- Coordination of business valuations
- Estate and gift tax planning for transferred interests
- Pre-sale cleanup of financials
- Management transition and reporting planning
- Ongoing review as circumstances change
The paperwork behind Succession Planning
| Form 709 | Gift tax return for transfers of business interests |
|---|---|
| Form 6252 | Installment sale income |
| Form 8594 | Asset acquisition statement for business sales |
| Form 706 | Estate tax return, if applicable |
| Buy-sell agreement | Legal agreement prepared by your attorney |
What we’ll need from you
Have these ready and your first meeting goes faster. Missing something? We’ll help you find it.
- Three to five years of financial statements and tax returns
- Ownership records and operating or shareholder agreements
- Existing estate planning documents
- Life insurance policies tied to the business
- Any prior valuations
How it works, step by step
Goals
We clarify what you, your family and your partners want.
Options
We compare transfer structures and their tax effects.
Coordinate
We work with your attorney and advisers to document the plan.
Execute
We implement in stages and review periodically.
Why clients choose us for Succession Planning
Small firm personality
You work with the same people every month, and they know your business.
Big firm capability
CPA-level reporting, controls and tax insight for growing companies.
Florida rules handled
Sales tax, reemployment tax, annual reports and property tax on one calendar.
Global business experience
Experience with companies trading across the U.S., Latin America and Europe.
Succession Planning across the United States
From our Doral office we provide Succession Planning to clients in all 50 states and Washington, D.C. Hover over a state to see its tax profile and the cities we serve; tap it to open the state page.
Services clients often pair with this
Estate Planning
Tax-focused estate planning that protects your family, reduces taxes and coordinates with your attorney's documents.
Learn more Business Accounting & AdvisoryPart-Time CFO Services
Senior financial leadership on a part-time basis: budgets, forecasts, KPIs, lender relationships and strategic decisions.
Learn more Tax Preparation & PlanningTax Planning
Proactive, year-round strategies that legally reduce what you owe before the year ends, for individuals, owners and families.
Learn more Tax Preparation & PlanningEstate, Gift & Trust Tax
Fiduciary income tax returns, gift tax returns and estate tax filings for executors, trustees and families.
Learn moreMore in Business Accounting & Advisory
Succession Planning FAQs
5 answers to the questions clients ask most. Don’t see yours? Ask us directly.
When should I start succession planning?
Ideally three to five years before you expect to step back. Early planning allows gradual gifting, financial cleanup and leadership development.
What is a buy-sell agreement?
A contract among owners that sets out what happens to an owner's interest on death, disability, retirement or departure, including price and funding.
How are business sales taxed?
It depends on whether assets or shares are sold, how the price is allocated and whether payments are received over time. Structure can significantly change the tax.
Can I transfer my business without gift tax?
Many owners can, by using annual exclusions and the lifetime exemption, sometimes combined with valuation discounts supported by a qualified appraisal.
Do you offer Succession Planning outside Florida?
Yes. Our office is in Doral, Florida, and we work with clients across the United States and abroad through secure uploads, phone and video meetings and e-signatures. South Florida clients are welcome to meet with us in person.
Talk to a CPA about Succession Planning.
Your initial consultation is free. Call us, email us or visit our Doral office, and we’ll tell you exactly what you need and what it will cost.