The United States is a land of family-owned businesses. These start-up and do-it-yourself enterprises make up between 80 and 90 percent of all companies in the United States, according to the Family Firm Institute. And yet, many smart, capable business owners lack a comprehensive succession plan that addresses the various issues that will crop up when they leave the business for retirement or other reasons, including sudden illness.
Succession planning can be an exciting, satisfying process for owners of closely held businesses, but it also involves difficult issues that must be tackled head on. One of the major challenges that entrepreneurs encounter is determining the best way to pass on the ownership of their business to their children or other heirs.The business owner can choose any number of methods of transferring ownership of a company, while simultaneously minimizing gift and estate taxes and probate costs.
Just as an individual goes through life cycles, so does a charity. From the start-up phase to adopting a strategic vision to looking at ways to grow the charity, there are many steps to consider at each important phase of the charity’s lifetime.Start-upA first critical phase in the life cycle of a charitable organization is the start-up period. Let’s take a look at some of the most important aspects of establishing a new charity.