Business Owner Planning Services

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Navigating Opportunities

With decades of expertise, Pallas Capital Advisors can help throughout all phases of your business. From formation to growth to a liquidity event, we’re with you every step of the way.

Business Entity Selection

The selection of business structure impacts the business operation in many different ways beginning at formation through business growth and ultimately when considering a business liquidity event. At Pallas, we work with business owners to help them think through the issues they will need to consider when planning to meet their long term objectives. Those issues often include:

  • C corp, S corp, LLC, partnership, sole proprietor
  • Section 6166 (estate planning)
  • Section 1202 (C Corp)
  • Section 199a – qualified business income
  • Income taxation – individual vs corporate
  • Coordination with exit plan
  • Coordination with estate plan
  • Voting vs. non voting equity
  • Corporate ownership
  • Qualified plan selection
  • Key employee compensation

Employee Benefits – Selection and Design

  • Qualified retirement plan
    • 401k/SEP IRA/SIMPLE
    • Employee stock ownership plan (ESOP)
    • S vs. C Corp considerations
    • Life insurance role
  • Health/welfare benefits
    • Group life
    • Group health
    • Vision/dental
  • Non-qualified retirement plans

Key Employee Compensation

  • Key person life insurance
  • Qualified vs. non-qualified benefits
  • Traditional deferred compensation
  • Life insurance-funded arrangements
  • Golden handcuffs
  • Long term incentive plans
  • Business succession

Business Succession Planning

As a partner or co-owner (private shareholder) of a business, a substantial portion of your family’s net worth is undoubtedly tied to the value and success of your business. Most successful business owners, at some point, need to consider setting up a buy-sell agreement. Doing so will help to ensure their family a smooth sale of the business interest in the event of the owner’s premature death, disability, or even retirement.

A succession plan exists to ensure that your business keeps running smoothly after you retire, move on to a different opportunity, or pass away. It can also provide for transfer of ownership to employees on the rise in your company. It’s a strategy that involves cross-training of your employees to provide them with the tools, business acumen, and understanding of your company operations to not only continue operations, but to take the company to the next level when the time is right.

It’s important to understand that your succession plan won’t just impact you and your staff, but also your shareholders and all those who have a stake in your company. The level of complexity of your plan will depend on the size and complexity of your company—a small, family-owned business requires a less complicated plan than does a large, publicly-traded company.

We carefully review the following:

  • Design
    • Redemption
    • Cross purchase
    • Wait and see/hybrid
    • Trustee cross-purchase
    • Business continuity trust
    • LLC buy out agreement

Coordination with Estate Planning
Employee stock ownership plan (ESOP)

  • S vs. C Corp considerations
  • Life insurance role
  • Funding
    • Life insurance
    • Disability insurance
    • Business revenue
    • Valuation concerns
  • Triggering events
    • Death
    • Disability
    • Retirement
    • Other departure
  • Key Person Planning
    • Qualified vs. non-qualified benefits
    • Traditional deferred compensation
    • Life insurance-funded arrangements
    • Golden handcuffs
    • Long term incentive plans
    • Business succession

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