Know what deductible compensation is. A properly-funded ESOP provides you with a mechanism for selling your shares with no current tax liability. Consult a specialist in this area to learn about additional benefits. Make a succession plan.
Many business owners wait too long to recognize all the benefits from making a succession plan.
These benefits include ensuring an orderly transition and ensuring the lowest possible tax cost. These entity forms should be considered for both tax and nontax reasons. These entities are discussed in Chapter 8 . Avoid nondeductible compensation. Compensation can be deducted only if it is reasonable.