The Story of the Business that Could: Creative Tax and Business Planning for the Closely Held Business

01.11.2016 | Wellesley Office Park, Wellesley, MA

Joseph B. Darby III and Richard H. Goldman presented at a seminar co-sponsored by Marcum and BNY Mellon. The seminar addressed the complicated issues and challenges that arise in operating a closely held business. Mr. Darby and Mr. Goldman discussed strategies for managing these challenges, including:

  • How to set up a business organization between and among unrelated individuals, and how this might differ if the founders are related to each other
  • How to bring family members into the business, and manage successfully everything from resentment of nepotism to sibling rivalry
  • How to negotiate the buyout of a departing founder, both when the owners are related and when they are unrelated, including Dutch auctions, secret bidding auctions, competitive bidding auctions, and other issues
  • How to decide whether and when to sell a business when the owners are not related
  • How to transition ownership and control of a family business from the parents to the younger generations
  • Clever uses of redemptions and stock options in family-owned S corporations, and transitioning “tax free” from an S corporation to an LLC
  • Estate planning for families with one business and multiple children who have different levels of interest and participation in the family business
  • Sophisticated family transition techniques, including GRATs, CLATs, and installments sales to defective grantor trusts

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