By 2018, Bob’s Discount Furniture will be opening six stores in Orange and Los Angeles Counties. This retailer is known across the East Coast and Midwest. The Bob’s Discount Furniture shop coming to Huntington Beach will replace the closed Sports Chalet store that closed in 2016 due to bankruptcy. The new stores plan to open on February 15th and will be the first of their kind on the West Coast. The success of this retailer is no doubt a result of good business planning.
The success of Bob’s Discount Furniture
The co-founder and president of Bob’s Discount Furniture seeks to change the way “customers experience furniture shopping.” The owners are excited about expanding their market. They currently have 89 stores across 15 states. The retailer has opened a dozen stores in the last year, which signifies a successful business. The new store in Huntington Beach will be located at 16242 Beach Boulevard.
Founded in 1991, Bob’s is a low-price furniture retailer with stores that feature café’s providing complimentary pastries and coffee. The chains have stores in New England, Delaware, Illinois, Indiana, Maryland, Missouri, New Jersey, New York, Pennsylvania, Virginia, and Wisconsin.
Sole proprietors need business estate planning
Sole proprietors need business estate planning, possibly more than other business entities. Sole proprietors need more protection because their personal assets are not actually separate from the business. That means, where you pass away, your business cannot continue unless you have a business estate plan in place. Unless you provide a specific plan of action in place, your expectations for business succession may not be realized.
Why a business estate plan is essential
All businesses involve risks and all business owners are exposed to legal or financial risks, as they operate their businesses. Starting a business, in itself, brings a certain amount of financial risk. The reality is, not all business owners recognize ever risk, legal or financial, to which they are exposed. Every legally binding agreement that you enter into has its consequences. With an appropriate business plan, you can reduce financial and legal risks.
What makes a sole proprietor different?
When the owner of a sole proprietorship dies, the business will cease to exist unless a successor takes over. Unlike corporations and partnerships, a sole proprietorship does not have a separate legal existence. Instead, the tax obligations and debts of a sole proprietorship are linked to the owner of the business. Either the business will dissolve or ownership must be transferred to someone else. If you want your business to continue, you have to create a business estate plan to make sure that happens.
Estate planning issues faced by many sole proprietorships
One particular concern for sole proprietors is how to protect their family’s financial future. For that reason, most sole proprietors include terms in their estate plans that direct the sale of the business or that appoint a relative to take over business operations. There are often tax consequences when a sole proprietor passes away. Without the proper estate plan, business assets will pass on to the next generation with significant estate and inheritance tax consequences. This is why it is so important that the business assets of a sole proprietorship be included in your general estate plan.
Ways to protect your business assets
One important aspect of business planning, and particularly asset protection, is liability insurance. They type of insurance you will need to provide appropriate protection for your business assets depends on the status of your business. Your insurance needs will likely change as your business develops. Adding an umbrella policy to your standard liability insurance coverage is wise because it provides individual protection, as well as homeowner’s and auto insurance coverage. Another way to provide asset protection for business owners is to establish a pension plan.
When should you establish a business plan?
Before there is any indication of financial or legal issues, you need to take affirmative steps to protect your business assets through a business estate plan. In additional to being a very prudent decision to make for your business, creditors have a more difficult time challenging any transactions or asset transfer you make. By completing your business plan early on, there are always more options available to head off any potential financial problems.
Download our FREE estate planning worksheet today! If you have questions regarding estate planning, trust contests, or any other trust administration issues, please contact the Schomer Law Group either online or by calling us in Los Angeles at (310) 337-7696, and in Orange County at (562) 346-3209.
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