By Boyce F. Lowery, CLU, ChFC
As a business owner with so many responsibilities, we know that you have a lot to consider. You spend your time and energy trying to grow your business, attract and retain your best employees, manage business finances, plan for succession and your eventual exit and so much more. With so many important daily tasks, it can be difficult to work on your business and personal planning issues when you are so busy working in your business on a daily basis.
That’s why our goal at Suncrest Advisors is to call attention to and provide innovative solutions for some very important planning areas in your business and personal life. As problem solvers by nature, we enjoy helping people who, like ourselves, have worked hard, achieved success, and want a secure financial future. Here are just a few of the services we can provide to you to help you work on achieving business and personal security.
We will provide a free informal Business Valuation to any business owner client or prospective client. Our free business valuations are excellent for obtaining the information needed to:
- Get a good idea of value before deciding whether or not to put your business up for sale
- Determine value while working on a buy-sell agreement or considering the updating of your buy-sell agreement
- Consider estate planning needs
- See how the business is performing relative to others in the industry
Succession and Exit Planning
When you think it is time to plan your exit from your business it may be already too late to take advantage of opportunities you didn’t know about in time. Regardless, there are a myriad of details and legalities to think about and plan. Privately-held business owners typically want to sell to an investor, to a strategic buyer, to one or more employees or simply transfer the business to family members. Depending on the facts and circumstances you have, we can introduce you to proven business brokers, an investment banker, or help determine if a superbly tax-advantaged exit strategy (ESOP) might be the best alternative for you. Most business owners know very little about an ESOP and typically, to their potential detriment, have serious misconceptions about how an ESOP works.
Our exit planning expertise and network of professional partners can help you determine your best course of action regarding your eventual exit from your business to maximize value, minimize taxes, and meet your other objectives.
Employee Recruiting and Retention Strategies
In today’s red hot human capital marketplace, we know it can be difficult to attract and retain quality employees. That is why we provide proven employee recruitment and retention strategies that are beneficial to both the employer and employees. Through the use of Supplemental Employee Retirement Plans (SERPs), ERISA plans, or a number of other planning strategies, we can show employers how to attract and keep their very best talent while sometimes preserving the business balance sheet and increasing business value and loyalty.
When was the last time you revisited your business owned life insurance policies? Here are some questions a life insurance audit and can address:
- Is your buy/sell fully funded? Is it up to date? When was it last reviewed?
- Is the buy/sell agreement structured in a way to increase tax basis to the remaining partners and eliminate taxes to the seller(s) or their estate?
- What happens if a business partner becomes disabled and is unable to hold up their end of productivity to the business? Is this risk addressed in the buy-sell agreement? If addressed, has the potential liability been funded through the use of disability buy-out insurance?
- Are your Key Person policies or other Corporate owned policies in compliance with IRC Sec. 101(j)? If not, we can identify those policies and then potentially save the business a large amount of income tax dollars when the death of that Key Person occurs.
Don’t leave your business open to unnecessary and costly tax liability. Get a life insurance audit that will give you peace of mind or identify important changes needed.
Tax Savings and Related Planning
With the enactment of the recent Tax Cuts and Jobs Act of 2018 (TCJA), there are many changes that could impact how you plan for your business and personal financial security. Do you know how this newly enacted tax law affects you and your business? Regardless of what type of business you own, the new tax law can make a significant difference in your current and future financial situation.
For example, until December 31, 2025, pass-through entities will receive a 20% deduction in taxable income calculated from the business’ qualified business income as outlined in IRC Sec. 199A. Did you know there are ways to take a part or all of the 20% income tax deductible income off the table and make it never subject to taxes or within reach of potential creditors? We can show you how to have both benefits and enjoy this money tax-free in your retirement years.
For C Corporations, the TCJA provides a flat tax rate of 21% – down from a potential rate of 35%. Have you thought about how are you going to use this newfound cash from your tax savings? Would you like to explore options for securing your most valuable employees to the company or for preserving that cash for your personal future use while making it off limits to potential future creditors? We can walk you through the options and help you maximize your money while minimizing your taxes.
Protecting Hard Earned Cash from Potential Creditors
In the state of Utah and in some other states as well, all monies inside a personally owned life insurance policy are statutorily asset-protected, once cured for 12 months. There is no limit. This available strategy could be very significant if we go through some tough years again or if you experience a downturn in your business or personal fortunes. We will show you how to avail yourself of a wonderful planning opportunity and receive a very respectable rate of return in a correctly designed life insurance contract.
Estate planning is ever-changing. Let us show you strategies that protect the ones you love, give to those you love, and not relinquish any more to the IRS than is legally required. We can help you find cost-effective ways to achieve this. Our decades of experience and relationships with the best, most up-to-date estate planning attorneys will help you with whatever your needs may be.
The business and personal planning needs of business owners are very often unavoidably intertwined. With our own expertise and that of our professional partners, we can address any financial need you may have.
We Want To Serve You
Regardless of the services we offer, our overarching goal is to provide peace of mind that the areas of planning we address are top of class in terms of advice and eventual result. The services outlined above are just some of the ways we can help; for more details, visit our website. We are problem solvers by nature and enjoy working in the business environment, though we are equally happy to work with anyone who would benefit from our expertise. For a free and confidential consultation to find out how we can help you with your unique situation, call us at 888-827-0146.
Boyce Lowery is a 40-year veteran and established expert in the insurance industry. As the managing partner of Suncrest Advisors, he, his partner, and their associates all aim to provide financial security and peace of mind to business owners, executives and professionals, and high net worth individuals across the United States. Along with more than four decades of experience, Boyce is a Chartered Life Underwriter® (the premier designation for insurance professionals signifying specialized knowledge in life insurance and estate planning) and a Chartered Financial Consultant® (known as the advanced financial planning designation). To learn more, visit http://suncrestadvisors.com/ or connect with Boyce on LinkedIn.