Are you ready to retire and travel the world, or have your children take over the family business? There are many reasons that people decide to transfer ownership of their business. A trusted advisor can help you decide which option is the best for you and ensure that the transfer is smooth sailing. Where do I begin?Plan your exit strategy ahead of time. When you’re ready to sell or close your business, having a plan for the succession or transfer of ownership will not only benefit you, your family, business partners and employees; it will also help to create stability if unexpected circumstances like financial hardship, injury, disability or death occur. A business succession plan is often included in estate planning for this very reason. Most business owners have several options when it comes to transferring ownership. There are several ways to do this: Outright SaleSelling your business outright is the best way to make a quick exit and get cash. When you sell a business in full, ownership is transferred immediately and you receive payment for your assets right away. Gradual SaleA gradual sale is a flexible option that is useful when selling your business to partners or employees. After transferring business ownership, you no longer have to worry about running the business but will still receive a monthly income from the sale. This option benefits buyers who cannot afford an outright sale but are able to finance a long-term payment plan. Lease AgreementIf you want to take a leave of absence from your business, a lease agreement will allow you to transfer ownership for a set amount of time. When you transfer business ownership through a lease, you commit to a contract that outlines its conditions and the payments you’ll receive during the time someone else has rights to the business. Transferring a Family BusinessAgain, proactive succession planning can ensure a smooth transfer of your business to family members. Tax implications such as estate and gift taxes can often arise. Seeking the counsel of knowledgeable lawyers will help to ensure all bases are covered to your benefit and the benefit of your successors. Creating a Sales AgreementOne of the keys to a successful sale of your business is a well-crafted sales agreement. It is important that the agreement contains all the terms of the purchase. Have your contract lawyer create an agreement that includes the specifics of everything you intend to sell, which can include assets, customer lists and intellectual property. The agreement will also outline any contingencies or conditions that must be met to complete the sale. Type of BusinessYour type of business will affect the steps that are required to transfer ownership. The tax implications of your transfer will differ as well. Rules for sole proprietors, partnerships, LLCs, and corporations require different actions that are specific to the circumstances of the transfer. Whatever your final decision may be, Carosella & Associates’ knowledgeable, experienced lawyers in West Chester, PA can help to make the transfer of ownership of your business a straightforward and low-stress process, allowing you to focus on new endeavors that may lie ahead. This blog was originally posted at http://carosella.com/transfering-ownership-of-your-business-what-are-your-options/.
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Protecting and helping your small business grow can be vital when it comes to its future prosperity. Whether you need a simple contract or are considering a complicated merger, Carosella & Associates’ experienced and knowledgeable attorneys can help your business thrive.
Business Lawyers We have decades of experience in assisting business clients with a multitude of legal issues. If you plan to retire, sell or pass your small business on to your family, our attorneys can also help you create a business succession plan that will protect your interests and help to make your exit plan successful. Business Entity FormationThe structure of an organization can have long-term consequences throughout the life of the business. Personal liability, company liability, tax implications and future management decisions such as succession or dissolution will vary depending on the type of entity you choose. Our qualified attorneys can help you determine which type of entity formation will best fit your needs. After your business entity is formed and registered we can also assist with the drafting of bylaws, stockholder agreements and other common business agreements. Our business attorneys can help with the formation of:
BankruptcyOur business attorneys are well-versed in bankruptcy law and the types of bankruptcy that are out there. We can help you understand and determine whether bankruptcy may be your best option. Real EstateThe purchase, sale, development and leasing of real estate can affect your bottom line in many ways. Our experienced attorneys can help to facilitate a smooth transaction and ensure that the interests of the buyer, seller, lessor, and/or lessee are protected. Litigation AvoidanceOne of the most important elements of business planning is to incorporate litigation avoidance strategies that can stop problems before they start. Our creative and experienced team of business lawyers will work hard to negotiate and settle disputes before they become court cases. Contracts LawyersContracts have formed the legal basis of business transactions for centuries. Our qualified and knowledgeable contracts lawyers can negotiate and draft enforceable contracts that appropriately cover all aspects of your transaction. The types of contracts our attorneys may draft include:
Whether you are a plaintiff or defendant, if a business deal goes south our skilled attorneys can negotiate a fair termination of the agreement to ensure your interests are well protected. If you are in need of legal services for your business, please contact one of our convenient locations in West Chester, Delaware County or Montgomery Country for a complimentary half-hour consultation. This blog was originally posted at http://carosella.com/legal-help-small-businesses-chester-county/. There are many steps involved in selling your home for sale by owner, but preparing a deed is one of the most important elements of transferring ownership. Working with experienced real estate attorneys who can prepare the deed and other documents will ensure that all of your legal bases are covered and the new deed is properly registered and recorded.
Why should I have a lawyer prepare the deed?A deed has specific language that must be included to correctly convey ownership of the property from one party to another. If the proper wording is left out or used incorrectly, the transfer of ownership to the next partly could be deemed invalid, which may likely result in multiple legal claims. Preparing a new deed also requires multiple steps, additional documents, and document standards that are required by all recorders of deeds in Pennsylvania. Having a competent lawyer draft the deed for transfer of your property will ensure that all of these standards and requirements are met. Your lawyer can assist you with these steps, including: Preparing a new deed and recording it with the “Recorder of Deeds” of the county in which the property is located. Determining appropriate fees and transfer taxes. Transferring property requires a transfer tax to the state, county and local municipality unless the transaction is between family members. If it is being transferred to family, a statement describing the relationship must accompany the new deed. A competent real estate attorney will know state-required home sale fees and transfer taxes. Preparing payments. Some counties require several separate checks while others will accept one and disperse payments. Preparing additional documents that must be submitted with the deed, such as a fully completed Statement of Value form. The Pennsylvania Department of Revenue requires that transfer taxes or statements of value must be included with all transfers unless the deed clearly states an exemption. Notarizing the new deed. All parties must sign the new deed in the presence of a Notary Public. Registering the deed before and/or after recording. Some Pennsylvania counties, boroughs and townships still require registration of deeds after recording. Most counties have very specific requirements that must be met when drafting a new deed and all of the documents that accompany it. You may be unaware that deeds and mortgages must include much more than the property’s value, municipality, county and state. There are many small details, such as book and page numbers, that must be cited when referring to mortgage documents. A lawyer who is well-versed in handling for sale by owner transactions will know exactly what is required when crafting a new deed. Knowledgeable business lawyers can also assist you with the creation of other documents and contracts related to the sale of your property and accompany you to the closing. When selling a property for sale by owner, having qualified attorneys on your team can help you avoid costly headaches and save money in the long run. Our knowledgeable attorneys in Montgomery County and West Chester will create a deed that ensures a smooth transfer of ownership, allowing you to move on to your next adventure in real estate. This blog was originally posted at http://carosella.com/preparing-a-deed-for-sale-by-owner/. A trust is an agreement that outlines how property will be managed and held for a beneficiary such as person or entity. There are many types of trusts that serve different purposes, so seeking the counsel of experienced Trusts attorneys is essential to help you decide which type of trust will best fit your needs.
The Goal of a TrustThere are various factors that can help you decide whether to create a trust as part of your estate plan. Some trusts can help you more effectively provide for your loved ones and maximize their inheritance by avoiding probate and reducing estate taxes. Putting assets in trust can also be an important part of business succession planning. Certain types of trusts can also prevent the courts from controlling your assets if you are incapacitated. Trust TerminologyThe grantor is the creator of the trust and has full control and legal capacity to manage or change the trust at any time. The trustee is responsible for managing the property in the trust. If you do not want to be your own trustee, you can name an adult child, friend, or institution to manage the trust while you are alive. The successor trustee manages the assets in the trust after your death or if you should become incapacitated. The beneficiary is the person(s) or organization benefiting from the trust. Beneficiaries do not have to exist at the time the trust is created. Property consists of the assets which are put into a trust, and can include any type of asset, including money, investments, jewelry and real estate. Types of Trusts A living trust or family trust is revocable, which means that it that can be changed or revoked by the grantor while he or she is alive. With a revocable living trust, ownership of your assets is transferred to the trust but you do not have to relinquish control over the trust. When the grantor dies, the trustee gains control of the assets in the trust. This allows your estate to avoid probate so your assets can be distributed to your loved ones right away. A revocable trust does not protect assets from estate tax, but can help your estate avoid probate court. If you are incapacitated by an illness or or accident, a living trust can also allow your trustee to handle your financial affairs without the need for a court-appointed guardian. An irrevocable trust is a trust that cannot be changed or controlled by the grantor once the trust is deemed irrevocable. Assets held in an irrevocable trust are not subject to estate tax after your death. In addition, transferring assets to an irrevocable trust can save on annual income taxes while you are alive. Testamentary trusts are irrevocable trusts created by a will after the grantor dies. People with large estates often use testamentary trusts to reduce estate taxes and to protect property from creditor claims. Life insurance policies included in testamentary trusts are not subject to federal income or estate taxes. Many parents use testamentary trusts to provide for their children, and to ensure that gifts left to the children are not distributed as a lump sum or given to the children at too young of an age. A testamentary trust may also be used to make sure a special needs beneficiary is provided for. Carosella & Associates’ experienced attorneys in West Chester can help you decide which type of trust will benefit your family and ensure that your legacy lives on after you’re gone. This blog was originally posted at http://carosella.com/3-things-you-need-to-know-about-trusts/. There are many steps involved in selling your home for sale by owner, but preparing a deed is one of the most important elements of transferring ownership. Working with experienced real estate attorneys who can prepare the deed and other documents will ensure that all of your legal bases are covered and the new deed is properly registered and recorded. Why should I have a lawyer prepare the deed? A deed has specific language that must be included to correctly convey ownership of the property from one party to another. If the proper wording is left out or used incorrectly, the transfer of ownership to the next partly could be deemed invalid, which may likely result in multiple legal claims. Preparing a new deed also requires multiple steps, additional documents, and document standards that are required by all recorders of deeds in Pennsylvania. Having a competent lawyer draft the deed for transfer of your property will ensure that all of these standards and requirements are met. Your lawyer can assist you with these steps, including: Preparing a new deed and recording it with the “Recorder of Deeds” of the county in which the property is located. Determining appropriate fees and transfer taxes. Transferring property requires a transfer tax to the state, county and local municipality unless the transaction is between family members. If it is being transferred to family, a statement describing the relationship must accompany the new deed. A competent real estate attorney will know state-required home sale fees and transfer taxes. Preparing payments. Some counties require several separate checks while others will accept one and disperse payments. Preparing additional documents that must be submitted with the deed, such as a fully completed Statement of Value form. The Pennsylvania Department of Revenue requires that transfer taxes or statements of value must be included with all transfers unless the deed clearly states an exemption. Notarizing the new deed. All parties must sign the new deed in the presence of a Notary Public. Registering the deed before and/or after recording. Some Pennsylvania counties, boroughs and townships still require registration of deeds after recording. Most counties have very specific requirements that must be met when drafting a new deed and all of the documents that accompany it. You may be unaware that deeds and mortgages must include much more than the property’s value, municipality, county and state. There are many small details, such as book and page numbers, that must be cited when referring to mortgage documents. A lawyer who is well-versed in handling for sale by owner transactions will know exactly what is required when crafting a new deed. Knowledgeable business lawyers can also assist you with the creation of other documents and contracts related to the sale of your property and accompany you to the closing. When selling a property for sale by owner, having qualified attorneys on your team can help you avoid costly headaches and save money in the long run. Our knowledgeable attorneys in Montgomery County and West Chester will create a deed that ensures a smooth transfer of ownership, allowing you to move on to your next adventure in real estate. This blog was originally posted at carosella.com/preparing-a-deed-for-sale-by-owner/. Whether you are creating a business plan or currently running your business, it is crucial to have an exit plan in place. Often one of the most overlooked elements of what makes a business successful, creating an exit strategy can set you up for an effective exit, regardless of the reason(s) you are leaving. Getting assistance from experienced business lawyers for an exit strategy that will help the strategic direction of your company and ensure an easy transition when the time comes to hang up your hat.
Drafting a will can save your family emotional upheaval, time and money in the event of your death. It is essential to enlist the help of experienced estate attorneys who will make sure your wishes are carried out in the event of your passing. If you die without a will, the state will distribute your estate based on the law of intestate succession. If a probate court proceeding is necessary, the court will choose a list of people who are eligible to fill the role of executor. Most states choose the surviving spouse as the executor, followed by adult children, then other family members. If you've been selected to serve as executor of an estate, keep in mind that it can be a time-consuming task that involves many responsibilities. Your intestate estate is made up of all property that is not distributed by will. Fortunately, many assets are not passed by will, such as:
If you have no surviving children or parents, your surviving spouse will receive the entire estate. If you are survived by children who are also the children of your spouse, your spouse will receive the first $30,000, plus half of the balance of your estate. If one or more of your surviving children are not your spouse’s children, your spouse will receive only half of the estate. Your children will receive the remainder. If there is no surviving spouse, your estate will pass in the following order:
If you are survived by minor children who are left parentless, a judge will appoint a guardian for your children and decide who will be responsible for managing their property. Failing to create a will that outlines guardianship for your children will needlessly increase costs and impose an unnecessary burden on your child’s guardian. These situations can be avoided with simple planning by working with attorneys knowledgeable in the matters of estate protection. Carosella & Associates’ experienced attorneys in West Chester and Delaware County can help you craft an estate plan that will provide peace of mind and ensure that your wishes will be carried out accordingly, leaving you and your family to get on with the business of living. |
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