In our initial meeting, we found that the only step taken was a valuation of the business, which is approximately $1.5 million, and an informal buy-sell agreement.
We discovered that the owners never put a formal plan in place for when the other owner passed or retired. We turned our focus to protecting the business, employees, and clients.
We learned that no insurance policies were in place to finance the buy-sell agreement, and the LLC agreement had no provision outlining the possibility of an owner’s full disability or divorce.
We found that the long-term retention of their employees was equally important, but the firm had no retirement plan or plan to educate new hires if one were to leave.
- They implemented their plan and we continued to meet with them throughout the years to monitor their progress and make adjustments along the way.
- Since both their retirement plans would be funded with pre-tax dollars, this would help enhance their present tax situation by lowering their taxable income.
- They felt comfortable that their goals were being met and trusted us to continue developing their plan for their ongoing needs.