Estate planning tends to be one of those “to-do” items that everyone knows that they have to complete, but the actual implementation of a plan is usually pushed aside for another day. Business owners and entrepreneurs are especially susceptible to estate planning procrastination because they tend to be focused on building and running their business and then preparing it for a sale. Early and often planning for business owners and entrepreneurs can save them time, expense, and taxes in the future, and position them for extraordinary success during both the highs and lows of the business cycle.

Planning Early

When business owners are first starting their business, estate planning is usually far from their top priority. Instead, they may focus on business efficiencies, minimizing costs, or raising funds to sustain the healthy growth of their business. It is precisely at the time of the creation of their business, however, when they should be focusing on their estate plans. Business owners should focus on the type of business entity that should be used to maximize flexibility and minimize tax consequences, the structure most appealable to a future investor, the best jurisdiction in which to create their business, and the most tax-efficient jurisdiction in which they should live when their business generates income. By planning at the outset, business owners can save significant time and expense that would be necessary to change a business structure later in the business life cycle.