| |
| |
|
Investing Information |
|
|
|
Use of a Franchise Business as a Family Tax Planning Strategy
Suggesting the use of a franchise business as a vehicle for family estate and tax planning. Specifically using as an example, The Car Wash Guys, a portable car wash franchise, where you will be purchasing a completely designed and outfitted car wash truck and the right to develop a specific city or regional area with out of pocket start-up costs between $25-50,000. There are many other types of mobile franchise busiensses in the same general price range due to competitive market components. Many questions on the minds of parents wishing to establish and perpetuate multigenerational estate assets for growth and eventual transfer. Programs they wish to develop can range from the simple gift to complex estate restructuring. How can you help your children start a business that does not have extreme start-up costs, extensive asset liability and has a greater chance of being profitable? What type of business could you establish, nurture and grow, that has a greater chance of being successful, increase in value over the years and is easily divisible among children with different management abilities, different interests in owning or running a business and who live in different cities? What type of business can be owned and operated by a family limited partnership that wishes to diversify their holdings and add a "business interest" to insure qualification by the IRS for the valuation discount when gifting minority interests? Family Gifting Using the Annual $10-20,000 Exclusion Gift Per Child Usual gifts are the funding of IRA's, pensions, additions to stock, bond, mutual fund or annuity accounts, purchase life insurance, fund education or special travel expenses. There is a desire for these gifts to be productive, protective, have long-term value, distribute income and have growth potential. A franchise business addresses all these issues. Why not help your heirs purchase a mobile type franchise, such as a Decorating Den, Oil Butler, Dog Grooming Franchise or perhaps a Car Wash Guys franchise business? Two parents can gift in one tax year the out of pocket start-up costs to purchase this business. The other costs can be financed. When there are several children that live in different cities or just have different ideas of how to run things, the purchase price of this franchise business is low enough so that each child can have their own business. To accommodate the annual exclusion gift amounts per heir for families with multiple children and grandchildren and for families that wish to establish business area dominance, arrangement can be made with These types of mobile franchises like the Car Wash Guys can be purchased for several cities or several regions. If you discuss this strategy with the franchisors of such businesses they can assist you in accomodating your needs, after all they also want to sell franchises and extend their brands in as many places as possible. Planned Asset Transfers To Children Assets managed by parents for later transfer to their heirs include securities investment portfolios, real estate portfolios and personally owned business interests. There is a desire for these assets to have a greater chance of maintaining their success, increase in value over the years and be easily divisible so that all the children can be treated individually and fairly. A franchise business addresses all these issues. And when selecting an appropriate opportunity, why not make your new business venture an adventure full of personal growth, civic recognition, financial reward, fun and enjoyment for all. Why not purchase a multiple city or multiple region Mobile Franchise franchise business? As a franchise purchaser you will be joining a proven system so that no prior business experience is needed for your new venture. You will be putting more odds for success on your side. As a Franchisee purchaser you will be joining a dynamic team that will enable you to be in business for yourself but not by yourself. A franchise business has an established 'floor value' that should increase over time with good management. The Car Wash Guys franchise can easily be broken up into individual cities or regions or organized and managed from the beginning as different cities and regions so that your heirs, who each have different interests and abilities, who may live in different cities across the country and who don't want to be tied to their siblings or to one project in one city, can receive a separate and complete business interest. This is possible now in a variety of franchised businesses. The Family Limited Partnership Effective estate planning is intended to provide for family members and others, while minimizing taxes and expenses. Intergenerational transfers and gifts often involve assets with joint ownership, partnership and/or other types of multiple person/entity ownership. There is a need to limit family and asset liability exposure. Many families create a family limited partnership that provides a means to own, manage and maintain control of assets while providing a vehicle for the orderly transfer of wealth to a younger generation. They transfer various personal, securities, real estate and business interests into this partnership. In the future it may be necessary for family limited partnerships to own and participate in an 'active business' to insure qualification by the IRS for a valuation discount when gifting minority interests to your heirs. What type of business can families with varying business backgrounds as well as varying interests in owning and running a business purchase to insure IRS qualification? Why not have your family partnership purchase a multiple city or multiple region franchise business? This would be a mobile business so there is no business property to own, lease or negotiate as well as no need for property to use as a store or office. In some mobile franchise businesses there is no need for a telephone answering service or additional telephone lines as this business comes with a nationwide 800 number and pagers. Calls for your business are received via this number and alphanumerically paged out to you or your staff. And there is no need for inventory, warehouse or shelf space as all equipment and supplies to run your business fits and can be stored on your truck. The ease of starting and owning a mobile franchise busienss or a business like the Car Wash Guys franchise business makes it a practical and rewarding addition to a family's assets. You can start small and grow as your family grows or start regionally and continue your family's life long legacy of quality and domination. Think on this concept. "Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs
MORE RESOURCES:
Investing - Google News |
|
|
|
RELATED ARTICLES
Variable Annuities You know all the articles you read about annuities that have extremely high fees? And the ones that people lose a lot of money in? Well, these are better known as variable annuities. yes, they do have some advantages. Your Worst Enemy To Successful Investing - The Media How do you make your investment decisions and where do you get your information? If you're like most of the people I know, you look to the experts.That's fine, however it's important to be aware that for every expert, there's an opinion and for every opinion there's an expert. Success Trading: More Basic Terminology for New Traders One important aspect of trading the markets is to understand how to feel it's overall pulse. In the stock market, this is measured by measuring the movements of selected stocks across various sectors to let us know how the market is doing in general. Trading Systems A trading system consists of a set of rules for viewing markets and making trades. The advantages of trading systems can be hidden when they become associated with trading platforms involving trade order submission and processing. Economic Survival in the 21st Century - the Three Key Questions to Ask In this "special report", I want to pose a few important "philosophical questions" to my readers. Firstly -- our Federal Reserve Chairman, Alan Greenspan, addressed the effects and implications of our aging population on things such as Social Security again in a speech that he made last Friday. Building The Foundation For Wealth You wouldn't build your home on anything less than a solid foundation. Similarly, you can't build wealth and financial independence without first having sound foundational principles to build upon. Margin Benefits are Marginal at Best Margin is one of those things that novices find puzzling about the stock market, but the concept is really quite simple. Still, with understanding the basics of using margin accounts, determining the wisdom of using margin can be quite a conundrum. Discipline in Trading and Investing The one thing I can think of that most affects both trading and investing has to be self-discipline.Being disciplined is fully 50% of the job of trading or of investing. 5 Day Trading Tips for Success 1. How to Treat Gap Openings A gap up or gap down open is an emotional move, and it often will reverse course and turn in to "trap open". The Power of Small Numbers: Trading Success is Based on Consistency, Not Home Runs Online trading is so seductive - just sit, click, and rake in the profits! But as anyone who has ever seriously attempted online trading will probably tell you, it's just not as easy as it sounds.Many beginning traders are seduced by the lure of the "home run", that big trade that makes you an instant millionaire and retires you overnight to your own private island paradise. Making Your Investment Dollars Work for You Investments are scary for some people, especially those who have never invested before. We grow up hearing horror stories about how this person or that person lost everything they had on some bad investment some odd years ago and it builds in us a fear of investing so profound that it is sometimes easier to get a confirmed agoraphobic to march in the Macy's Day Parade than it is to get someone to put a few dollars into stocks or mutual funds. How to Analyze the Veracity of Investment Newsletters When trying to analyze whether a promotional ad for an investment newsletter or a market timing investment trading system is worthy of investigation, the following questions should be asked:Does the strategy have a track record? Without this you are really allowing your emotions to be in play. All of us want to believe that if someone says something it must be true. Inflation Proof Your Investment Portfolio with ETF's Even though inflation has been relatively quiet in the U.S. Retirement - Its Sooner Than You Think!! (Honestly) Many people hear "retirement" and think- what? 401K? Roth vs. Traditional IRA? Stocks, bonds, mutual funds? Do they?Or do many people put money away according to the suggested amount and then simply hope that when retirement comes all will work out?One report I read estimated that 66 million Americans have put away a Whopping $0 towards retirement. When It Comes To Investing, Asking The Right Questions Can Help You Make The Right Decisions Are you ready to open your pathway to financial independence?Well you should be. The sooner the better. The Arrow-Debreu Contingent Claims Model of Investment Throughout the discussion of speculation and stability, we emphasized that uncertainty theorists now have a generally accepted framework for modeling choice under uncertainty. Economic theorists have chosen to model uncertainty as the revelation of a state of the world. Powerful Options Basics Lessons Improving your trading in 180 days. An option is a traded security that is a derivative product.By derivative product we mean that it is a product whose value is based upon or derived from the price of something else. Copy Cat or How to Use a Successful Trading System How many books have you read about successful traders? How they did this or that and made a fortune and are still doing it. You say to yourself, "I'm going to follow his method and get rich". Investing for Retirement - Not an All or Nothing Play In 1519, Hernando Cortes, beached on the shores of unexplored Mexico, made a fateful decision: he would burn the ships he and his men arrived in and attempt to overthrow Montezuma and the mighty Aztec empire. The decision was risky. Which IRA Is Best For You? An Ira is one of the greatest ways to save on taxes currently and accumulate money for the future.For individuals three types of IRA's will normally come under consideration.
|
| home | site map |
| © 2006 |