Businesses need to think ahead and set up a robust succession plan. Hennessey highlights that only 30% of business owners have a formal plan in place for succession, despite a low success rate for business owners who attempt to pass on their businesses to the next generation. Additionally, there needs to be a focus on how those plans are communicated, to employees, customers, suppliers and business partners, among others. In cases where this renders the income not necessary, business owners can avoid income tax by donating that income to a donor-advised fund. All of these strategies are important to consider when thinking about the plan for the future of a business.

Source: Forbes November 13, 2020 16:30 UTC