The Entrepreneur’s Corner

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 Bonds Chesterfield VA

State trooper shot in Henrico cul-de-sac


SEPT. 20, 11:30 A.M. – A North Carolina woman who Virginia State Police say shot a state trooper in Henrico last night has been charged with attempted capital murder of a police officer and the use of a firearm in the commission of a felony.

The woman, Karisa Shyanne Daniels, 23, of Durham, N.C., allegedly fired at Senior Trooper C. A. Putnam on Lakeway Court, a Henrico cul-de-sac near September Drive shortly before midnight, following a chase. > Read more.

C-SPAN bus to visit UR Sept. 27


The University of Richmond will host a multi-media C-SPAN bus Sept. 27 from 1 to 3 p.m. The "50 Capitals Tour” – open to the public on – is designed to engage students and community members through interactive demonstrations of C-SPAN's multi-platform public service resources.

The 45-foot customized motor coach will be placed on the University Forum. > Read more.

Free flu shots available at MedExpress, opening Sept. 20


MedExpress Urgent Care will open a new neighborhood medical center in Henrico Sept. 20 at 8040 W. Broad St. To help Richmond-area residents prepare for the upcoming flu season, the new center will offer free flu shots to patients ages four and up starting the day the center opens and while supplies last.

An open house celebration and ribbon-cutting ceremony will be held prior to opening day, Sept. 19 from noon to 2 p.m. > Read more.

Crime Stoppers’ Crime of the Week: Sept. 18, 2017


Crime Stoppers is seeking information about a shooting in Richmond that resulted in an injured child and the murder of an adult.

At approximately 10:21 p.m., Sept. 9, Richmond Police were called to the 3200 block of 5th Avenue for a report of a person shot. They quickly located two victims suffering from gunshot wounds, a 57-year-old male and a 9-year-old female. > Read more.

Business in brief


Commonwealth Senior Living at the West End, located at 2400 Gaskins Rd., will hold their grand opening on Oct. 3 from 4:30 p.m. to 6:30 p.m. The community recently underwent a multi-million-dollar renovation which included the addition of a new memory care neighborhood, new resident suites, an expanded dining room, and brand-new courtyards and additional outdoor spaces. Commonwealth Senior Living associates will be on site to provide tours of the newly renovated community. > Read more.

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September 2017
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Memphis soul/pop artist Nick Black will perform at 8 p.m. at The Tin Pan, 8982 Quioccasin Rd. This is Black’s first performance in Richmond. His next album “Summer + Spring” will be released in August. Black won the 2016 Blues Music Award for “Band of the Year” for his work with award-winning blues and boogie-woogie band Victor Wainwright & The WildRoots, as well as the Pioneer Award for “Most Promising Male Performer” in 2017. Tickets are $12 in advance and $15 at the door. Doors open at 6 p.m. For details, call 447-8189 or visit http://www.tinpanrva.com. Full text

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