Let us create a 3D eBook for you!
Let us create a 3d Digital eBook for you! DigyCat.com

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

This RSS feed URL is deprecated

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

Many Americans spend more on coffee than investing - Fox5NY


Fox5NY

Many Americans spend more on coffee than investing
Fox5NY
68 percent of those surveyed said they would rather talk about their weight than retirement savings. That might be because more than half of respondents said they didn't invest any money in the past year. 31 percent said they didn't think they would ...

How to use your investments to support women in the workplace - CNBC


CNBC

How to use your investments to support women in the workplace
CNBC
But does your investment portfolio match that goal? A growing number of investments are aimed at companies that include and promote women. As of November, so-called "gender lens investing" included 22 investment strategies, 18 of which focused on U.S ...

Kiley Kendall column: Time is a key factor in investing - New Philadelphia Times Reporter


New Philadelphia Times Reporter

Kiley Kendall column: Time is a key factor in investing
New Philadelphia Times Reporter
Growth potential — Contrary to myth, there's no real way to “get rich quick” when investing. To build wealth, you need patience — and time. If you own quality investments with growth potential, and you give them years — in fact, decades — to ...

Emerging Economies Free of 'Original Sin' but Companies Still Unforgiven - U.S. News & World Report


Emerging Economies Free of 'Original Sin' but Companies Still Unforgiven
U.S. News & World Report
For one thing, much of the debt is not easily accessible to foreign investors; for another, borrowing in dollars, pounds or euros is usually cheaper, especially since the crash in Western interest rates after 2009. Above all, investors see these ...

and more »

SA Interview: Opportunistic Value Investing With Nat Stewart - Seeking Alpha


Seeking Alpha

SA Interview: Opportunistic Value Investing With Nat Stewart
Seeking Alpha
We emailed with Nat about his approach to position sizing, how he finds ideas and whether Berkshire (NYSE:BRK.A) will eventually be broken up. Seeking Alpha: You recently tweeted "am convinced success and popularity of factor investing creates massive ...

Next OPEC+ Ministerial Meeting Planned for April: RIA - U.S. News & World Report


U.S. News & World Report

Next OPEC+ Ministerial Meeting Planned for April: RIA
U.S. News & World Report
FILE PHOTO - Journalists queue at the entrance of OPEC's headquarters ahead of an OPEC meeting in Vienna, Austria, November 30, 2017. REUTERS/Heinz-Peter Bader Reuters. MOSCOW (Reuters) - The next Joint OPEC-Non-OPEC Ministerial Monitoring Committee ...
Crude Oil Prices - Weekly Outlook: January 22 - 26 Investing.com

all 656 news articles »

Model claims she lost $150K investing in film flop: suit - New York Post


New York Post

Model claims she lost $150K investing in film flop: suit
New York Post
A famed catwalker claims she lost $150,000 that her financial adviser convinced her to sink into a movie he was making. Accountant Nick Schlatmann allegedly promised a 20 percent return to Slovakian stunner Kinga Rajzak in 2013, she claims in a ...

The Coin Toss And Investing Success - Seeking Alpha


Seeking Alpha

The Coin Toss And Investing Success
Seeking Alpha
It is no secret that investors - professionals as well as individuals - have trouble outperforming a simple index. This has led to more passive investments in ETFs and particularly ETFs that mimic indices such as the SPDR S&P500 ETF (SPY) and many ...

Is Value Investing A Good Idea? - Forbes


Forbes

Is Value Investing A Good Idea?
Forbes
To answer this question I will invoke the wisdom of Joel Greenblatt, one of the foremost experts on value investing. I interviewed Greenblatt in my book Hedge Fund Market Wizards. Joel Greenblatt is currently Managing Principal and Co-Chief Investment ...

LargeFriends.com - the best dating site for plus-sized singles!
SuccessfulMatchCentral.com - the best dating site for plus-sized singles!

PreLaunchX

MyIdeal Domain Is For Sale - $8,000 For Enquiries eMail Us

© www.MyIdeal.biz - 2012

home | site map | links