The post Do I Need a Real Estate Agent to Sell My Home to a Family Member? appeared first on The Law Offices of Marjory Cajoux.
]]>Before you fall for the temptation to bypass hiring a real estate agent to handle the process, it would be beneficial to consult a business law firm in Brooklyn for legal counsel to understand your options and the risks such a transaction poses.
Selling a home happens through one of two popular transactions. The first is an arms-length transaction, and the other is a controlled transaction.
This refers to a deal between people unknown to each other. Two strangers come into a purchase agreement free and independent of each other. Each party is interested in negotiating the most favorable price in these transactions.
In most cases, an appraiser must be in the picture to confirm that the price the parties agree on is the most advantageous. The appraiser works on behalf of the lender.
Controlled transactions are deals between people known to each other, for example, a parent selling their house to their son. In such real estate transactions, there’s always an emotional attachment to the process, with both parties acting out of a need to avoid taxes and shield family wealth.
While this may sound good, the IRS might soon catch up with you. It will examine if the sale price reflects the fair market value or if the transaction involved a gift given to the buyer at a much lower sale price. Tax and other implications could arise, so it’s vital to get legal counsel from a residential real estate transactions lawyer in Brooklyn beforehand.
The IRS isn’t a proponent of controlled transactions for various reasons. The transactions attract more scrutiny from the agency because of the higher risk of fraud in the deals. Selling your house to a relative below the market value to avoid tax could land you in trouble with the IRS. Furthermore, you owe gift and capital gain taxes when you sell your house to a family member.
Gift tax is the fee you pay when you transfer property but receive nothing or less than the total value in return. As of 2022, you can give up to $16,000 within the year without paying gift tax. Gifts with a higher value attract a tax rate of 18-40%, depending on how much is above the limit.
While the donor has the sole obligation to pay the gift taxes, some people tend to avoid them altogether. Before gifting or selling your house to a family member, it would help to consult a Brooklyn business law firm to learn more about these taxes and how they affect you.
Capital gains tax is not due when selling your house to a family member at a value below the market price. However, the buyer will face these taxes later because your tax basis (the property’s original value) will become the buyer’s tax basis.
If you would like to help your relative avoid the capital gains tax, the best thing to do would be to let them inherit the home in your will. Inherited property isn’t subject to the same taxes as gifted property. A Brooklyn residential real estate transactions lawyer can provide more legal counsel on this.
Since real estate agents work on a commission basis, the easy way out would be to bypass their services. After all, you and the buyer have agreed on the price, and the house’s condition is acceptable. Not paying a real estate agent’s fee sounds like the most sensible thing to do, but this could be easier in theory than practice.
Even if you have a good relationship with the buyer and agree on most things, hiccups could arise later, landing you in trouble. To protect yourself from unforeseen trouble, consider doing the following:
Despite agreeing on a selling price, you’ll still need the services of an appraiser if the buyer needs a mortgage for the home. Lenders typically need an appraisal from professionals in the field to ensure the home’s value matches the mortgage’s value.
To be safe, ensure the appraisal is ready before signing any paperwork. You don’t want to realize later that you undervalued your home.
Real estate transactions are complex, detailed, and involved. There are many regulations and potential pitfalls around it, and you want to ensure you’re on the right side of the law. So, it would be advantageous to have a Brooklyn residential real estate transactions attorney by your side before signing any documents or closing the deal.
An experienced real estate attorney will evaluate the transaction details and push for a smooth process in closing the deal. Having some legal oversight protects you from any legal issues that may arise later.
Regardless of how much you and your family member trust each other, it’s crucial to have the home inspected by a professional before closing the deal. A home inspection certifies that the house is in excellent condition and absolves you of any liability later.
Understandably, you don’t want to incur the additional expenses of hiring a real estate agent since you and your family member are already in agreement. However, some compelling legal reasons why you would want to hire one include the following:
With all the necessary guardrails in place, selling your house to a family member should be seamless. While it’s natural to want to seal the deal without the involvement of a real estate agent, doing so may work against you in the long run. It’s also advisable to engage a Brooklyn residential real estate transactions attorney to help you keep up with gift tax regulations.
A business lawyer from our firm can provide legal counsel on the federal and state laws that affect real estate transactions and ensure your rights are protected. Talk to us today for sound legal advice.
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]]>The post Honoring Haitian Singer Mikaben After His Tragic Death on Stage appeared first on The Law Offices of Marjory Cajoux.
]]>Mikaben, whose name is Michael Benjamin, was performing with the Haitian group Carimi at the Accor Arena on Saturday when he became ill, the venue said in a statement on Twitter.
“During the Carimi concert, one of the singers, Michael Benjamin, Mikaben,” the arena tweeted Sunday, “died after fainting on stage and despite the intervention of emergency services. The whole team at Accor Arena is terribly affected and sends all of its support to his family and loved ones during this painful time.”
His wife, Vanessa Fanfan, wrote that she had “lost her other half” in tributes shared on Instagram.
“Heavenly Father, I know you don’t make mistakes and you won’t give us what we can’t bare [sic] but…this pain is very heavy. Help me please or merciful Lord,” Fanfan wrote.
Benjamin was also remembered by singer Wyclef Jean, who captioned a video of the two artists together shared on Twitter, “Rest In Peace King @mikaben Gone too soon #haiti.”
The son of Hatian singer Lionel Benjamin, Mikaben composed, produced and performed various hit songs with Carimi, including “Baby I Missed You,” which has over 9 million views on Youtube.
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]]>The post After Moratorium, Evictions Are Increasing in New York City appeared first on The Law Offices of Marjory Cajoux.
]]>With the expiration in January 2022 of the moratorium on residential evictions in New York, evictions – and concerns about evictions – are again on the rise. With evictions increasing, more landlords and tenants will need the advice and services of a New York City eviction attorney.
While the number of evictions carried out so far in 2022 is far below the pre-pandemic rate, more than 200,000 eviction cases piled up during the two-year moratorium, and the number of eviction filings has rapidly increased this year as landlords seek to recover their pandemic-related losses.
Now that the moratorium on residential evictions has expired, what legal protections remain for tenants in New York City who cannot pay rent and face the possibility of eviction? What legal steps can those tenants take?
If you will keep reading this brief discussion of evictions, tenants’ rights, and the law in New York, you will learn the answers to these questions, and you will also learn about the advice and legal services that a New York City housing lawyer can provide.
The Tenant Safe Harbor Act, adopted in 2020 as a response to the pandemic, protects residential tenants who were unable to pay rent during the eviction moratorium due to a financial hardship. The Act does not apply to rent that was due prior to the moratorium or since its expiration.
To avoid eviction under the Tenant Safe Harbor Act, a tenant must show a New York Housing Court that he or she experienced a financial hardship during the moratorium period. Proving necessary pandemic-related expenses may persuade the court to recognize a financial hardship.
New York City’s Right to Counsel law took effect in 2017, and while it effectively protected the rights of residential tenants in New York City prior to the pandemic, there is now a shortage of available lawyers, and several legal aid groups have even stopped accepting new eviction cases.
The law is supposed to provide tenants who are under 200 percent of the federal poverty line with legal counsel in Housing Court, but according to Raun Rasmussen, who is the executive director of Legal Services NYC, “Thousands of tenants are not going to be able to get a lawyer.”
Although additional federal funding was recently approved for New York’s Emergency Rental Assistance Program (ERAP), those funds will not come close to meeting the need. More than 135,000 applicants are waiting for relief, and meeting their requests would cost $1.7 billion.
The most recent federal funding for ERAP, $99.4 million, is six percent of the amount that is needed. The New York Office of Temporary and Disability Assistance, which administers ERAP, has requested another $1.3 billion in additional funds from the federal government.
Patrick Tyrrell, a senior staff attorney at Mobilization for Justice, is not optimistic that more federal funds will be approved for ERAP in the near future. “Right now,” according to Tyrrell, “the political will in D.C. to give what states are asking for their ERAP programs is low.”
The legal protections afforded to residential tenants in New York City do not mean that a tenant will not eventually have to pay rent, but many owe far more than they are eligible to receive through ERAP, and as mentioned above, many tenants at risk for eviction have no legal counsel.
A rising number of evictions in New York City, a shortage of lawyers to represent tenants, and a lack of sufficient federal rent relief funds are all part of a larger, looming issue – the nation’s affordable housing crisis.
Tenants’ rights advocates want the New York State Legislature to pass “good cause” eviction legislation, which failed to pass in the last legislative session. Along with other provisions, the legislation would set a cap, tied to inflation, on how much residential landlords may raise rents.
Tenants’ rights advocates are also asking the State Legislature to increase the income limits on who may qualify for free legal assistance in a New York Housing Court.
According to Patrick Tyrrell with Mobilization for Justice, “If we keep on this track . . . evictions are going up exponentially every month. And that would be terrible on a human level, because the shelter system is not equipped for that.”
In October of this year (2022), New York City’s homeless shelter population reached an all-time high – 62,174. The average lengths of stay in a shelter are also at all-time highs:
City officials are attributing the shelter crisis, at least in part, to the massive influx of immigrants into the city this year. More than 19,000 immigrants have been processed this year by the city’s shelter intake system, and more immigrants continue to arrive in New York City every day.
A New York City eviction attorney can advise and represent tenants who face eviction as well as tenants who are dealing with maintenance problems, unreasonable or illegal rent increases, and other infringements of tenants’ rights. Tenants’ rights in New York City include the right to:
Landlords also have rights, and landlord-tenant relationships do not have to be confrontational. A New York City housing lawyer can often act as a mediator between a landlord and a tenant and help those parties reach an agreement or understanding that is acceptable to both sides.
Most housing attorneys also handle cases that involve housing discrimination, landlord liability, and related housing issues. Whether you are a tenant or a landlord in New York City, a good housing attorney can offer the personalized advice and professional legal services you may need.
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]]>The post Can I Bring My Family Members to the United States on my EB-1 or EB-2 Visa? appeared first on The Law Offices of Marjory Cajoux.
]]>Employment-based options fall into two categories: employer-sponsored and non-employer-sponsored or self-petitions. An immigration law firm in New York can guide you on what each option entails and which best applies to your situation.
Employment-based options are more popular than family-based ones. They include Labor Certification, applicable for all jobs, and Outstanding Researcher/Professor (EB-1B). That’s applicable for permanent faculty or tenure track.
An applicant can self-petition on the National Interest Waiver (EB-2) or Extraordinary Ability (EB-1) under the other Employment-based option. Many employers limit who and when they will sponsor for permanent residency. Some only provide sponsorship for specific positions or employees who will hold a particular job for a specific period.
At the same time, an employer may specify a “waiting period” in which an employee isn’t eligible for sponsorship until they’ve been with a company for a certain period on a temporary visa. Temporary positions like postdocs, visiting faculty, or medical residents may not be appropriate for employer-sponsored cases. Consult an EB-1 visa attorney in New York to learn more.
The EB-1 visa category applies to the following categories of applicants:
Those who demonstrate extraordinary arts, education, athletics, or business abilities can apply for the EB-1 visa. They must provide extensive documentation of sustained national or international acclaim and recognition in their fields. Applicants don’t need specific job offers as long as their aim of entry into the U.S. is to continue in the areas where they have extraordinary abilities.
They must have at least three years of teaching or research experience and be internationally recognized. Their intention for coming to the U.S. must be to pursue tenure, tenure track teaching, and comparable research position at an institution of higher learning.
They must have been employed for at least one of the three preceding years by a U.S. employer or an overseas affiliate, subsidiary, parent, or branch of the company. If the applicant’s employer is outside the US, they must be in a managerial or executive capacity, and the applicant must be coming in that capacity.
The EB-2 is the second Employer-based option for applicants with a labor certification approved by the Department of Labor. The applicant must have a job offer from an employer in the US. The employer must file an Immigration Petition for Alien Worker, Form 1-140, on behalf of the applicant.
The two subgroups of employees that can apply for this visa are:
An advanced degree, in this case, refers to one beyond a baccalaureate degree. Alternatively, the applicant could be a baccalaureate degree holder with at least five years of progressive professional experience.
Applicants in this category must demonstrate exceptional arts, science, or business ability. Remarkable ability refers to having a degree of expertise significantly above what is considered ordinary in the mentioned fields.
After the U.S. Citizenship and Immigration Services approves your petition, it will send it to the National Visa Center(NVS). The NVC will assign it a petition case number. If your priority date meets the recent qualifying date, the NVC will instruct you to fill out Form DS-261, Choice of Address, and Agent.
However, if you have an immigration law firm in New York working on your behalf, you don’t have to fill out Form DS-261. The NVC will start pre-processing your case and provide you with instructions to submit the relevant fees.
Once you do, the next thing is to submit the necessary visa and civil documents. Your EB-1 visa attorney in New York can guide you on how visa case processing happens at the National Visa Center.
Depending on your approved petition, your family may also apply for immigrant visas with you. However, your children must be younger than 21 years and unmarried. They’ll apply for visas as derivative applicants.
The eligibility criteria for adjustment of status as derivative applicants are:
Employer-based immigrant visas can take additional time to process because they’re numerically limited. That means the visa center issues them in the chronological order applicants filed until the center reaches the annual numerical limit for the category.
Therefore, the time it takes varies from case to case and isn’t easy to predict accurately. Your case may delay if you don’t follow the instructions carefully. That’s why it’s crucial to have an EB-1 visa attorney in New York to review your application for mistakes that may delay it.
If you wish to apply for permanent residence in the United States under the employer-based option, it’s crucial to consider all the possible options and how they can affect you. You must plan and understand any limitations that may affect you and your family.
A New York EB-1 visa lawyer at our law firm can help you understand what to expect and guide you through the process. We will ensure you complete all required supplemental documentation free of errors to prevent unnecessary delays. Talk to us today for expert legal advice.
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]]>The post I WILL NOT BE GOING TO A SHELTER appeared first on The Law Offices of Marjory Cajoux.
]]>The post I WILL NOT BE GOING TO A SHELTER appeared first on The Law Offices of Marjory Cajoux.
]]>The post Is an LLC the Right Choice for Your Business? appeared first on The Law Offices of Marjory Cajoux.
]]>The business structure you choose affects every aspect of your business, from the day-to-day operations to the taxes to how much of your own assets are at risk. A New York business lawyer can help you choose a business structure that provides both legal protection and benefits.
If you start a business in New York, you may form a limited liability company, a corporation, a sole proprietorship, or a partnership. However you choose to structure your business, you will need the advice and services of a business attorney. Is an LLC the right structure for your business? What are the advantages and disadvantages of LLCs, and how do you set one up?
If you will keep reading this brief introduction to start-up businesses and LLCs, you’ll find some answers, but if you are the person who is starting up the new business, you must also have an attorney’s personalized guidance and advice as early as possible in the start-up process.
Most small businesses in the U.S. today are LLCs. An LLC is a business formation that protects the company’s owners (called “members”) from personal liability. In most cases, your home, vehicles, and savings won’t be at risk if your limited liability company is sued or goes bankrupt.
If you currently own a partnership or a sole proprietorship, forming an LLC can be a way to protect your personal assets from liability claims and creditors. An LLC may be owned by a single individual, several individuals, another LLC, a corporation, or a trust.
Limited liability companies are similar in a number of ways to corporations, but the legal restrictions and requirements for limited liability companies are somewhat less daunting and burdensome than the restrictions and requirements for corporations.
Both corporations and LLCs have owners, but in LLCs, the “members” have made direct investments and own the assets of the business, whereas the owners of a corporation own shares of stock but not corporate assets.
Forming a limited liability company in New York is a two-step procedure. The first step is entity formation, which means registering your LLC with the New York Department of State. The second step is meeting the New York LLC Publication Requirement.
Under New York law, when an LLC is formed, it must publish a new business entity notice for at least six consecutive weeks in at least two newspapers as directed by the County Clerk in the county where the LLC is located.
A Certificate of Publication, along with Affidavits of Publication, must then be submitted to the New York Department of State within 120 days of the LLC’s formation. If the LLC does not comply with the publication rule, its right to continue doing business is suspended.
A New York City business attorney will register your LLC with the New York Department of State and will ensure that you satisfy the publication requirement. Your attorney will also prepare your charter or Articles of Organization, draft your Operating Agreement, and obtain your Employer Identification Number from the IRS.
Corporations are subject to “double taxation” because corporations are taxed at the corporate rate (21 percent as of 2022) and taxed again after profits are distributed to shareholders. But profits in LLCs pass directly to members and are taxed only once as a part of the owner’s personal income.
If you are a member of an LLC, you may even transfer your personal assets and property into the LLC – almost as if it were a trust – for one or both of these reasons:
Moving assets and properties into an LLC can be a smart strategy for landlords, investors, and even for other start-up businesses. Ask a New York business lawyer to provide personalized advice about the potential tax consequences of transferring assets and properties into your LLC.
LLC members receive a percentage of the company’s profits each year and pay the tax on their personal income taxes. For example, if an LLC with two members earns $100,000 in profits this year, each member pays personal income taxes on his or her $50,000 share.
Members of limited liability companies are considered self-employed. They pay self-employment taxes (including the Social Security and Medicare tax) on their share of the company’s yearly profits.
Several factors will indicate if an LLC is the best choice of business structure for your new business: for example, your own financial situation, your taxes, and your potential liability exposure.
Your lawyer will make sure that all required fees are paid, all required legal forms are submitted, and all deadlines are met. As businesses grow, so do their long-term planning needs. A business attorney can also assist and advise owners with long-term business planning needs that involve:
A business attorney can also provide ongoing general counsel services and help you identify potential legal issues – and put remedies in place – before those issues develop into difficult legal problems.
What you have been reading is only a brief introduction to business formation and limited liability companies.
As your operation grows, and as business laws change over time, a New York business attorney can address your concerns, provide you with aggressive legal representation if necessary, and ensure that your business plan is implemented and properly updated as necessary.
If you are starting up a new business in New York, have all of your questions about business formation and limited liability companies answered – and have all of your concerns addressed – by promptly scheduling a consultation with a New York City business lawyer.
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]]>The post Thinking About Buying a Home, But Worried That You Don’t Know Enough? appeared first on The Law Offices of Marjory Cajoux.
]]>Read the practical advice that she gave to potential homeowners here: https://www.homeownering.com/blog/2018/08/24/what-if-the-home-you-buy-has-a-lot-of-problems/
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]]>The post What Are the Benefits Of Incorporating Your Business? appeared first on The Law Offices of Marjory Cajoux.
]]>What are the benefits of incorporating your business, and what’s the best way to do it? Keep reading this brief introduction to incorporating a business in New York, and you will learn the answers to these questions.
Incorporating is an effective, legal way to protect a business owner’s personal assets. As distinct legal entities, corporations are liable for their own debts. In most cases, a corporation’s creditors cannot “go after” the personal assets of the corporation’s shareholders, directors, or officers.
This protection allows a business owner to conduct business without placing homes, vehicles, or savings at risk. By contrast, the owners of sole proprietorships and partnerships may face unlimited liability for their personal assets as well as their business assets.
Furthermore, if you don’t incorporate, your personal assets may be at risk from anyone who sues your business. If a customer trips and breaks a leg in your store, or if a pedestrian is injured by your delivery driver, and you haven’t incorporated, you may be personally liable.
Issuing shares of stock allows a corporation to develop and prosper over time. Corporations are more attractive to investors than sole proprietorships and partnerships, and banks prefer lending to corporations rather than unincorporated businesses.
Incorporating enhances your reputation. Suppliers, clients, investors, and lenders–and in fact the public at large–view corporations as more stable and reliable than other businesses. Incorporating expresses your dedication to operating a stable, long-term business venture.
Philadelphia Contributionship (an insurance firm) and Caswell-Massey (a soap and perfume company) were incorporated in 1752. Corporations may operate for decades or even centuries, no matter what happens to the directors, managers, officers, or shareholders.
The endurance of a corporation will let you create long-term business plans and establish a strong foundation for your business.
A corporation’s endurance offers a genuine advantage when it’s time for succession. You may plan a gift, a sale, or a purchase by your family. Whatever option you choose, the corporation and all its contracts and leases will remain in place.
When an owner leaves, even if the owner has not planned for succession, incorporation lets that owner’s interest pass easily to another owner or a new owner. Shareholders may freely transfer their interest in a corporation to another party without the consent of other shareholders.
If you don’t want your involvement in a business to be on the public record, incorporating the business is your solution.
Incorporating in New York registers your business name with the New York Department of State. Upon its approval, that business name is yours alone to use in the State of New York and cannot be used by another business in this state.
However, to obtain brand protection in the other states, you’ll need to have a New York business attorney help you register your trademark with the U.S. Patent and Trademark Office.
Corporations are subject to different tax rates than individual taxpayers, so incorporating separates your business and personal income taxes.
When you incorporate your business, a number of tax deductions are available that are not available to sole proprietorships and partnerships. For example, you can deduct startup expenses, operational costs, and employee benefits.
Although some may see additional record-keeping as a disadvantage of incorporating, you can take advantage of the stricter record-keeping requirements for corporations.
Precise records make it easier to secure loans and attract investors. Those records can also give you a clear picture of where you may need to make changes to improve your company’s profitability.
A New York incorporation lawyer advises and guides business clients through every step of the incorporation process and can provide a number of other business-related legal services to clients in the New York City area.
To learn more, or to begin incorporating your business right away, contact our business attorney in New York City at 718-237-0411. It’s one of the smartest business investments you can make.
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]]>The post Can You Take on a Business Partner After Being a Sole Proprietor? appeared first on The Law Offices of Marjory Cajoux.
]]>Since sole proprietorships involve only one owner, they are not usually based on any kind of formal business agreement. Thus, the law in New York doesn’t require you to dissolve your sole proprietorship in order to transition to a partnership.
A partnership is established when two or more persons do business together. What does it take legally to transition from a sole proprietorship to a partnership? If it’s time to alter your business structure, keep reading this brief discussion of partnerships for the answers you may need.
You will need to start the transition from a sole proprietorship to a partnership by deciding which type of partnership is right for your business. New York allows three types of partnerships:
1. general partnerships
2. limited partnerships
3. limited liability partnerships (LLPs)
New York allows the formation of limited liability partnerships only for professionals. This exception protects partners from the liabilities and debts that may arise from a court’s judgment against another partner, for example, in a professional malpractice case.
After the partners have chosen a partnership type, they need to have a partnership agreement, which should be prepared by a business lawyer. A New York business lawyer routinely prepares partnership agreements for their business clients in the New York City area.
A partnership agreement describes each partner’s duties and contributions. You’ll also need to choose a name for your partnership and register that name with the New York Department of State. You should then request an Employer ID Number from the Internal Revenue Service.
Additional steps will hinge on the type of business that the partnership intends to conduct. These steps include obtaining necessary licenses and permits. If products and/or services will be sold, the partnership must be registered with the New York State Department of Taxation and Finance.
Every new partnership requires help from a business lawyer as well as an accountant. Our law firm provides assistance with business concerns that include taxes, zoning, liability, the protection of intellectual property, and compliance with hiring and employment laws.
Like all other businesses, partnerships are governed by local, state, and federal regulations and laws. We can help you establish business practices, policies, and solutions–now–to protect you against lawsuits and other potential legal difficulties in the future.
Even the most mundane and routine decisions that a business owner can make may open the door to a potential legal difficulty. If you are establishing a partnership, you should put a New York business lawyer on your team from the very beginning.
Developing a long-term relationship with an experienced New York business attorney is one of the smartest moves a business owner can make. To learn more, or to schedule your first business-related legal consultation, contact our law firm in New York City at 718-237-0411.
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]]>The post Does Your Small Business Need a Succession Plan? appeared first on The Law Offices of Marjory Cajoux.
]]>Plans for business succession provide an owner’s directions for changing the ownership of his or her business. If you are a business owner in the New York City area, don’t wait for retirement to prepare a succession plan. No one can know what tomorrow will bring.
In fact, it’s best to prepare a succession plan for your business as soon and as early as possible. If the worst happens unexpectedly, your plan will reduce confusion, offer directions, and may even keep the business thriving.
What is a business succession plan? Why is it so essential? When should you have a business succession plan in place? What benefits can a business succession plan provide? If you will keep reading, you will learn the answers that every New York business owner should know.
As your business expands, grows more complicated, and involves a growing number of people, you need a clear, precise, well-crafted business succession plan. A proper succession plan advances everyone’s interests–you, your successor(s), and your clients and employees as well.
An effective succession plan either designates a new business owner or owners, or else it provides instructions for selling your business–to another owner, an employee or group of employees, or a third party–when the time arrives.
If you’re selling the business or you intend to sell the business eventually, let a New York business attorney counsel you and guide you step-by-step through the process of establishing a business succession plan.
If you don’t intend to sell the business, you may choose one or more persons to follow you as the owner (or owners) of the business. Business succession planning can provide for loved ones if there comes a time when you can’t, but naming someone to follow you may be complicated.
For example, transferring the business to an heir usually means additional taxes. However, a New York business succession planning attorney can help you find ways to reduce that tax burden.
The three keys to creating an effective business succession plan are:
1. Establishing a timeline: The plan can take effect on a certain date when you become incapacitated or upon your death.
2. Naming your successor or successors in the plan, or if you intend to sell, spelling out precisely how a new owner will purchase the business.
3. Valuating the business: If you’re selling your business, sell it for what it’s worth, and until then, have your valuation routinely updated.
Now is not too soon to prepare your business succession plan. In the New York City area, to discuss your options for business succession planning, or to get started now, contact a business attorney at 718-237-0411 to arrange your first succession planning consultation.
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