How can corporate successions be optimized for tax purposes?
February 16, 2022 | 50,00 EUR | answered by Ella König
Dear tax advisor,
My name is Erik Eichenlaub and I am facing the challenge of managing the succession of my family business. My father founded the company many years ago and now wishes to retire. I am very interested in taking over and successfully running the business. However, I am concerned about the tax aspects surrounding inheritance and succession.
Current situation: The company is generating solid profits and has a good reputation in the industry. My father has indicated that he would like to pass the company on to me. However, he also wants to ensure that the tax burdens for me as the successor are not too high and that the company is not burdened by high inheritance taxes.
My concerns primarily revolve around not knowing exactly how to optimize the tax aspects of succession. I would like to know what options are available to minimize the tax burden and what tax benefits there are in taking over the company. I also want to ensure that the handover of the company goes smoothly and that the business can continue to be successful in the future.
So my question to you is: How can succession planning be optimized from a tax perspective? What tax planning options are available to minimize inheritance tax and ensure a smooth succession process? I would greatly appreciate your expertise and advice in successfully and tax-efficiently managing the succession of my family business.
Thank you in advance for your support.
Best regards,
Erik Eichenlaub
Dear Mr. Eichenlaub,
Thank you for your inquiry regarding the tax aspects surrounding the succession of your family business. It is understandable that you are concerned about inheritance tax and succession, as these are important points to consider when taking over a business. I would like to provide you with some information and tips on how you can optimize the tax aspects of the business succession.
Firstly, it is important to know that there are various ways to minimize the tax burden in the context of business succession. One option is early planning and structuring of the succession. The earlier you start planning, the more flexibility you have for tax-optimized solutions. It may be beneficial to take certain steps during your father's lifetime to reduce the tax burden.
Choosing the right business structure is an important point. Depending on the legal form of the business (e.g. GmbH, sole proprietorship, partnership), different tax implications may arise. It may be advisable to adapt the business structure in the context of succession to take advantage of tax benefits.
There are also various tax planning options to minimize inheritance tax. This includes transferring business shares during lifetime to avoid high inheritance taxes. Utilizing exemptions and tax benefits for business successions can also help reduce the tax burden.
Another point to consider in tax-optimized business succession is the preparation of a tax-optimized will. Here, provisions can be made to minimize the tax burden for the heirs.
Additionally, it is important to consider all tax aspects in the context of the business transfer to avoid potential tax risks. Comprehensive tax advice from an experienced tax advisor is essential to ensure a smooth and tax-optimized business succession.
I hope this information is helpful to you and provides insight into the tax aspects of business succession. I am available for a personal consultation to work together on an individual and tax-optimized solution for the takeover of your family business.
Best regards,
Ella König, Tax Advisor
