Henrico County VA

The Entrepreneur’s Corner

Solidifying the long-term future of your business
Here’s an important question for busy business owners – what’s next for your company? Not just tomorrow or even in the months ahead, but when the time comes that you or one of your key employees retires or leaves the organization unexpectedly?

At a time when many baby boomers are thinking about retirement, those who own a business need to plan not just for their life after work, but for the future of the firm they’ve committed so much of their lives to. In a small- or mid-sized business, the owner and perhaps other key personnel play such a vital role that special planning is required to prepare for circumstances in which any of these individuals is no longer part of the organization. If your business doesn’t have a succession plan in place, it is an issue that needs prompt attention.

There are a number of questions to consider in helping prepare for the period of transition a company inevitably faces. They include:

• Who is in line to follow the principals of the firm? The most fundamental aspect of a succession plan is to have a replacement (or replacements) in line. In many cases, a family business will move from one generation to the next. In other situations, a trusted employee or group of employees may need to be groomed and prepared to assume control of the company in the future.

• How will control of the business be transferred? Once successors are identified, there are a variety of ways that control of the business can be transferred to them. Among the options are an outright sale to the new owner – either in a one-time transaction or an installment sale – or the use of a trust vehicle, such as a grantor retained annuity trust (GRAT) or a grantor retained unitrust (GRUT). Those are irrevocable trusts to which you transfer appreciating assets while retaining an income payment for a set period of time. At either the end of the payment period or your death, the assets in the trust pass to the other trust beneficiaries (the remainder beneficiaries). The value of the retained income is subtracted from the value of the property transferred to the trust (i.e., a share of the business), so if you live beyond the specified income period, the business may be transferred to the next generation at a reduced value for estate or gift tax purposes.

An important consideration in the decision-making process is potential tax ramifications, particularly for the seller. There are tools available to help reduce the potential impact of capital gains, estate and gift taxes when a sale occurs. Good planning plays a critical role in making sure that both the seller and the buyer achieve the most favorable results.

• What forms of protection are in place in case an unexpected event occurs? The need to implement a succession plan can sometimes strike without notice. Businesses that involve partners or likely successors, for example, may benefit from having a buy-sell agreement in place.

A buy-sell agreement lets you keep control of your interest until the occurrence of an event that the agreement specifies, such as your retirement, disability, or death. Other events, such as divorce, also can be included as triggering events under a buy-sell agreement. When the triggering event occurs, the buyer is obligated to buy your interest from you or your estate at the fair market value. The buyer can be a person, a group (such as co-owners), or the business itself. Price and sale terms are prearranged, which eliminates the need for a fire sale if you become ill or when you die. Remember, however, that you are bound under a buy-sell agreement.

Business succession is a complex matter. It involves close work with a financial advisor, tax specialist and an attorney experienced in these types of matters to structure a solution that is most suitable for your business and potential successors.

Justin R. Martin is an associate financial advisor with Ameriprise Financial Services, Inc. Contact him at (804) 320-3105 or .(JavaScript must be enabled to view this email address).
Bail Bondsman Henrico VA Richmond VA
Community

Henrico man to compete in Liberty Mutual Invitational National Finals

Henrico resident Larry Loving, Jr., will compete with three other locals – Thomas Scribner (Richmond), Roscoe McGhee (Midlothian) and Larry Loving (Richmond) in the Liberty Mutual Insurance Invitational National Finals at TPC Sawgrass, in Ponte Vedra Beach, Fla., Feb. 26-Mar. 1. The foursome qualified for the national golf tournament by winning the Liberty Mutual Insurance Invitational, held at Whiskey Creek Golf Club in Ijamsville, Md. on June 11. That event supported the RiteCare Center for Childhood Language Disorders.

In total, 240 amateur golfers will compete in Florida. > Read more.

Henrico PAL recognizes supporters, HSHS athlete


The Henrico Police Athletic League (PAL) held its Sixth Annual Awards Banquet Feb. 5 at The Cultural Arts Center of Glen Allen, celebrating accomplishments of 2014 and recognizing outstanding contributions to the organization. Henrico County Juvenile Domestic Court Judge Denis Soden served as master of ceremonies and former Harlem Globetrotter Melvin Adams served as keynote speaker. 

Among the 2014 honorees were Richmond International Raceway (Significant Supporter), Richmond Strikers Soccer Club (Significant Supporter), Henrico County Schools-Pupil Transportation (Summer Camp Supporter), Bruce Richardson, Jr. (Youth of the Year), Sandra Williams (Volunteer of the Year), Thomas Williams (Employee of the Year), Mikki Pleasants (Board Member of the Year), and Michelle Sheehan (Police Officer of the Year).   > Read more.

‘Fresh Start’ offered for single moms

The Fresh Start For Single Mothers and Their Children Community Outreach Project will host “Necessary Ingredients” on Thursdays from 6 p.m. to 7:30 p.m., beginning Feb. 12 and continuing through May 7, at Velocity Church, 3300 Church Road in Henrico. Dinner and childcare will be provided free of charge.

The program is designed as a fun and uplifting event for single mothers that is designed to provide support, new friendships, encouragement and motivation. Each event will include weekly prizes and giveaways. > Read more.

Page 1 of 123 pages  1 2 3 >  Last ›

Entertainment

Travinia brings contemporary elegance to Willow Lawn


It was another win for Willow Lawn when Travinia Italian Kitchen and Wine Bar opened there six months ago, nestled in the heart of the re-made shopping center. The contemporary American Italian restaurant boasts 13 locations up and down the East Coast, with the Henrico location opening in August.

In the same week, I hit up Travinia twice, once for lunch and once for a late dinner. At lunchtime on a weekday, I was overwhelmed by the smell of garlic and by the number of working professionals in nice suits on their lunch breaks. When we first walked in, I was concerned our meal would be a little too pricey based on the décor – it’s a really nice place. Luckily, the menu has a variety of options for every budget. > Read more.

Soak up the fun

‘SpongeBob’ movie energizes with wit, laughter

There’s a ton of sugar in The SpongeBob Movie: Sponge Out of Water. Literal sugar, as SpongeBob Squarepants (Tom Kenny) and Patrick (Bill Fagerbakke) inhale their own weight in cotton candy and eat ice cream, one scoop per mouthful.

At one point we burrow into the brain of our boxy yellow hero and discover the inner workings of his brain: googly-eyed cakes and candies that giggle and sing. All of which is extremely appropriate for a film like Sponge Out of Water. Because not only is the movie sweet (the “awwww” kind of sweet), but it’s the equivalent of a 30-candy bar sugar rush, zipping between ideas like a sponge on rocket skates.

The story under all this is really not that complicated. SpongeBob flips burgers at the Krusty Krab. > Read more.

Weekend Top 10


With this last round of snow still fresh on the ground, the best way to start the weekend may be at Southern Season for their weekly wine-tasting program, Fridays Uncorked. Families with cabin fever will enjoy the Richmond Kids Expo, taking place tomorrow at the Richmond Raceway Complex. Some date night options include the Rock & Roll Jubilee at The Cultural Arts Center at Glen Allen, HATTheatre’s production of “The Whale” and National Theatre Live’s “Treasure Island” at the University of Richmond. For all our top picks this weekend, click here! > Read more.

Page 1 of 118 pages  1 2 3 >  Last ›







 

Reader Survey | Advertising | Email updates

Classifieds

Sr. SAS Programmer Analyst w/MS degree & 1 yr. exp.: provide analytical support to perform data analysis, backend testing, adhoc reporting, custom./modify. to standard reports, dev. strategies to increase bus.… Full text

Place an Ad | More Classifieds

Calendar

The Rock & Roll Jubilee will take place at 7 p.m. Feb. 27-28 and 2 p.m. March 1 at The Cultural Arts Center at Glen Allen, 2880 Mountain Rd. Journey… Full text

Your weather just got better.

Henricopedia

Henrico's Top Teachers