Three Ways to Transfer the Family Business

I’ve had clients who have had to deal with business succession issues and so I invite John L. Wong to provide some insight into what business succession planning is and why business owners should think about it.   As an Orange County Estate Planning Attorney, many of my clients own some form of small business. One of the first questions I ask is: “What’s going to happen to your business when you retire or pass away?” There are two very common responses: I’m going to transfer the business to my children; or I’m going to sell the business. I could certainly go through a bunch of hypotheticals to poke holes in these two responses, but often times, if the question was phrased differently, the issue becomes much clearer. “What would happen to your business if you died today?” After some reflection, common responses are: The business would fail; The business would be taken over by an employee. So how do ensure your business is transferred under the first set of scenarios instead of the second set? How do you ensure … Continue reading

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Guest Blogger – Things to Think About When Considering Bankruptcy

As the economy continues to move sluggishly and unemployment rates remain high, business owners and employees alike have asked “should I file for bankruptcy”?  Since I have no idea where the nearest bankruptcy court is, I enlisted the help of Irvine bankruptcy attorney Jeffrey Hsu to guest blog here today. “When should an individual file for bankruptcy?  That is a difficult question to answer because the decision to file for bankruptcy is specific to the individual contemplating bankruptcy relief. The decision to file bankruptcy should always be one of last resort.  That means other options should always be completely exhausted before one decides to file bankruptcy.   Most importantly, filing bankruptcy is fact specific and depends on the issues a person is facing. The most common factors for those filing bankruptcy include issues related to credit card debts, lawsuits, wage garnishments, or tax liabilities.  When an individual faces such issues, the likelihood of filing for bankruptcy is still not certain.  Factors that can influence the decision to file for bankruptcy include, but are not limited to: Property the individual may lose as non-exempt … Continue reading

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