Protecting Your Business Against Loss

Guest Contributor: Peter J. Merrick, TEP

Website: EXIT WITH SUCCESS - EXPERT IN CROSS-BORDER RISK

As a business owner, there's no doubt that you've faced countless sleepless nights contemplating various concerns related to your enterprise. While some concerns might seem momentary, requiring immediate attention, others are long-term. One such thought that might haunt you is: What if you, a business partner, or a vital employee had been unexpectedly rendered incapacitated, or worse, passed away yesterday? Such thoughts might seem morbid, but they're essential to consider. If these worries resonate with you, read on to explore how you can safeguard your business and achieve peace of mind.

1. Personal Security: Protecting the Interests of You and Your Family

Firstly, let's take a step back and evaluate the personal implications. As the owner, your business is more than just a source of income; it's the lifeblood that sustains you and your family. It guarantees consistent cash flow, possibly offering you perks like health and life insurance, and even assets like a company car.

But here's the unnerving question: If you were to be unexpectedly taken out of the equation, where would that leave your family? Would the business continue to provide the same benefits? And what about the inherent value of the business as a substantial asset on your balance sheet?

To alleviate such concerns, consider establishing a business succession plan. This plan will provide a clear roadmap on how the company will transition after you, ensuring that the benefits and financial security it offers remain intact for your family.

2. The Business Perspective: Ensuring Continuity

Now, shifting focus to the business perspective. As an integral part of your company—perhaps its backbone—your role and contributions are undeniably crucial for its smooth operations. Your unique skills, leadership, and vision drive the business towards growth and success. But in your absence, there's a looming uncertainty: How will the business fare without your guiding hand?

Moreover, if something were to happen to you, how would the business address potential financial demands from your family? These might include consistent cash flow or even the need to liquidate the business interest.

To ensure that your business remains resilient and continues to prosper even in your absence, it's imperative to develop a business continuation plan. Such a plan would offer actionable steps for your co-owners and key personnel to follow, ensuring that the business remains steadfast, fulfilling its obligations to your family and other stakeholders.

In Summary

Every business owner must confront and plan for these eventualities, no matter how unsettling they might seem. By developing both a business succession plan and a business continuation plan, you can rest easy knowing that both your family's well-being and your business's future are secure. Being proactive now will offer clarity, structure, and peace of mind in the long run.

Let's set up a complimentary introductory meeting with Peter J. Merrick to review your policies by CLICKING HERE.

About the author. Peter J. Merrick, TEP, is a Commentator/Keynote Speaker & Expert in US/ Canadian/International Cross Border and Estate Planning and Insurance & Annuity Planning - Author of The Business Novel - The King of Main Street. To read reviews, please click here.

Who is Peter J. Merrick, CFP, TEP?

Over three decades, Peter specialized in de-risking and saving his clients up to 40% of their wealth that would have otherwise been paid out because of poor planning. These proven solutions effectively shelter income, reduce taxes on income and estates and defer or eliminate tax on investments and creditor-proof assets for domestic and international clients.

Peter is also an author:

Peter has written three comprehensive LexisNexis business, legal, tax, succession and estate planning textbooks. For 18 years, Peter wrote a column for LexisNexis called "The Bottom Line," one of the largest professional tax and accounting publications.?Peter was also a university and college finance and financial planning lecturer for over 12 years.

In 2019, Peter relocated to San Diego, California, from Toronto, Canada. Right now, he sees a number of wealth-saving opportunities resolving long-ignored issues for Canadians in corporate planning, cross-border US and international planning, financial, philanthropic, and estate planning implementation, utilizing Canadian/US Life Insurance and Canadian/US Annuity strategies.

Peter works with high-net-worth individuals and their legal, tax and financial professionals performing Canadian estate freezes and terminal tax planning, as well as those who seek to relocate to the US or have financial interests in the US from places like Canada and other national jurisdictions.

It is absolutely essential that you partner with and work with an expert familiar with the Canadian Income Tax Act, the IRS Tax Code, and US/International Tax Treaties before implementing any strategy in the areas of Canadian estate freezes, terminal tax planning, and cross-border planning.

Let's set up a complimentary introductory meeting with Peter J. Merrick to review your policies by CLICKING HERE.

#BusinessSuccessionPlanning #BusinessContinuityPlanning #SmallBusinessOwners #Entrepreneurship #FamilyPlanning #LegacyPlanning #RiskManagement #FutureProofing #PeaceOfMind