- Practice Areas
- Contact Us
The business has gotten off the ground and hopefully is turning a nice profit. Certain employees have become key to the business’ operation. The owners may want to insure the key employee’s continued employment through the granting of an equity position in the company subject to certain restrictions. Perhaps a policy of key man insurance should be considered to help protect the company if that key employee dies. But if that employee leaves, the company should have non-competition and non-disclosure agreements in place.
As the company grows, the business may acquire another business in the same line of business to gain strength in the market or to diversify. And as the business grows, the company may need to lease additional space or the company’s financial advisors may suggest that owners buy real estate for lease to the company.
This might also be the time for the owners to start thinking about succession planning. Who is going to take over when the current owners retire or die?
All of these issues have a financial impact on the company. We believe in a team approach, and prefer to work with the owner’s and company’s accountants and other financial advisors to help ensure that whatever course of action is taken, it makes the most economic sense and minimizes any tax impact.