Successful succession planning: tricks of the trade

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As a business owner, you know that the work doesn’t stop just because you’ve gotten your venture off the ground and all operations are in full swing. If you’re smart about your future, you know that succession planning is a vital part of solidifying the success of your business down the road. But success doesn’t always come easy, especially when you take into account factors like your will, your assets, and the ever-essential taxes.

As you begin crafting your succession plan, keep these tips from the Canada Revenue Agency in mind:

  1. You may need a new business number
  2. When the owner of a sole proprietorship or one of the partners in a partnership or one of the members of a corporation’s board of directors changes, it is important that you contact your tax services office
  3. Depending on the partnership agreement and whether or not the business was registered using legal names of each partner or the provincially registered partnership-operating name, death or departure of a partner could trigger a legal name change or require the registration of a new business number (BN) and CRA accounts
  4. Treat the value of the inventory as a purchase of goods for resale, and include it in the cost of goods sold in your income statement at the end of the year. CJ

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