Business owners are continually tasked with finding innovative ways of protecting their businesses and achieving longevity once they are gone, which could result in strenuous relationships during operations. Unknown to many, trusts provide a secure tool for securing business assets, providing greater control and a solid foundation for the growth of your business. Below, we look at various ways that trusts benefit company owners that will be worth your while.
Maintaining Control and Access to Your Business
One of the main concerns of owning a business is maintaining control and access to your business. Trusts are created to solve this challenge, providing various ways of creating the right balance of access and control. Depending on your needs, different trust structures will come with varying degrees of power, making it possible to hand over your business to your successors while maintaining a comfortable level of leadership.
Trusts also allow you to remove assets from your ownership, keeping them insulated when incidences such as litigation arise. According to trust benefit company experts, business owners are not required to disclose trust assets on their balance sheets, providing a protection safeguard when liabilities and the sale of businesses arise.
Assets will often be subject to estate taxes, an aspect that often causes a significant decrease in wealth passed on to beneficiaries. Trusts benefit company owners by saving up to 40% of any increased value. Signing up to a trust allows you to pass on wealth to beneficiaries tax-free, making this a viable option for owners looking to benefit from increased future growth.
Avoidance of State Income Taxes
Businesses will regularly go through different growth phases, with numerous finding themselves in need of liquidation for various reasons. This opens up room for state income taxes on the sales price, which can often take up a significant part of your business. Trusts can help you safeguard a substantial portion of your assets, allowing you to keep your hard-earned income for other uses.
If you need help with any of the above solutions, consider giving Crimson Stone Capital Solutions a call today. We specialize in financing solutions and customized funding to give you the best chance for business growth.