The Business Must Go On

Have you thought what might happen to your business – your customers and your staff – if the worst happened and you fell ill or stepped out in front of a bus tomorrow?  We set out the top five things that every small business owner should consider to ensure that their business can survive after they’ve gone.

  1. Write a will– a will sets out who will get your business assets after your day and the executors can be empowered to run the business until it can be passed on or sold.
  2. Draw up a partnership or shareholder agreement– amongst other things this will regulate how a partner’s capital is paid out or company owner’s shares transferred.
  3. Register a Lasting Power of Attorney– this appoints someone to look after your property and financial affairs if you are no longer capable of making decisions for yourself. 
  4. Take out Business Protection Insurance– this is a broad category where you may wish to take out a selection of different policies to suit your personal and business needs.  These include:     
    1. Life cover, Critical illness or Income protection to protect dependents if the main earner becomes ill or dies. 
    2. Shareholder protection – to allow other shareholders to buy out another owner’s shares if they become ill or die
    3. Business loan protection – to help the business to clear its debts in the event of death
    4. Key man insurance – to protect against loss of key staff members
  5. Optimise your Inheritance Tax reliefs– ensure your business is structured so you are in a position to claim 100% Business Property Relief on all your business assets.

 

Helen Thornley, Tax Consultant, Kendal and Penrith

E: helen.thornley@armstrongwatson.co.uk T: 01539 942030

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