America was built on the backs of farmers and small business owners. Even today, owners of business organizations and owners of family farms provide jobs to millions, provide the food that we eat, and provide products and services that make life great for Americans and for people worldwide. If you own a farm or a family business, you have built an important legacy that you need to protect. You need to ensure you make smart choices to manage risk, maximize the potential for growth, and protect your enterprise both during your life and after your death.
The Los Angeles business and estate planning lawyers at Schomer Law can provide you with the personalized advice that you need. Give us a call to speak with an experienced attorney about how we can help you to protect your farm or family-owned business. We’ll offer you the guidance you need that is tailored to your situation and we can answer questions including:
- What are some unique challenges faced by owners of farms and family businesses in Los Angeles?
- What legal tools can you use to protect your Los Angeles farm or family business?
- How can a Los Angeles estate planning lawyer help you to protect your family business or your farm?
Farm and Family Business Owners Face Challenges
When you own a farm or a family business, the hard work and labor you invest allow you to produce wealth for your family and to create a lasting legacy. Unfortunately, there are threats to your efforts throughout the course of your life.
Business owners are vulnerable to being sued, while farmers could find their land at risk if they face a personal or professional lawsuit. A farm or family business could also be lost to creditor claims, while a large tax burden could make profitability difficult. After the death of a farmer or family business owner, there are also issues of estate taxes and a potentially complicated succession process to contend with.
You need to make sure you do everything you can to minimize the risk that your farm or family business could be lost due to unforeseen events, high taxes, or financial struggles.
What Legal Tools Can You Use to Protect Your Farm or Family Business
There are different approaches to be taken to protect your farm or family business to reduce the risk of litigation, loss to creditors, or high tax bills which force the sale of land or property. The right plan will depend upon the value of your farm and family business, the structure of your ownership, and many other factors.
You’ll need to get personalized advice on how the law applies to you and on what tools you can use to make the law work for you. For example:
- The way business ownership is structured will affect how profits are taxed, as well as whether your personal assets are at risk if a business goes bankrupt or is sued. An experienced attorney can help you to consider incorporation or other forms of business ownership that minimize liability.
- The way property ownership is structure can affect taxes, the transfer of assets, and the potential risk of loss. It may be possible to create a trust which will put your company or farm beyond the reach of creditors and which can limit or avoid estate taxes.
- The plan you create for succession can affect operations. You don’t want your company or farm to be tied up in probate and to be inefficiently managed for weeks, months, or years after you pass away. You need to create a plan for death, disability, or incapacitation and this plan should be in place well before disaster happens.
There have been many tragic cases where a business built over a lifetime failed after its owner died or where family farmland owned for generations had to be sold off to pay an estate tax bill. You don’t want all you have worked for to be destroyed because you didn’t take the time to plan effectively and use the legal tools available to you. If you have a farm or family business, or if you hope to grow and develop one, reach out now to Schomer Law to get help.
How Can a Los Angeles Lawyer Help You with Business?
At Schomer Law, we understand all of the different California and federal laws which business owners and farm owners can use to secure and protect their assets and to ensure those assets can be handed down through the generations. Give us a call now to learn more about how we can advise you on your options to protect your farm or your family company.