Author: YOUR BUSINESS WORTH

Business and Financial Planning to help business owners create business strategies to growth wealth, protect wealth, and to be a position to extract their wealth when they need it the most.

The Current Employee Isn’t your Dad’s Employee!  

by YOUR BUSINESS WORTH, posted in Uncategorized

Thomas J. Perrone, CLU,CIC

Relationships with employees have changed over the years, and professionals in the Human Resource field have had to change as the times have.   

Today’s broadcast covers 10 poignant questions about dealing with the ever-changing profile of employees and what it takes to create a strong business culture.   

Our guest Bob Moran discusses a wide range of  situations in business and how smaller companies can adjust to these changes.  

Proactive Positive Employee Relations, LLC 

Robert Moran 

74 Limewood Ave Branford, CT 06405

203 918 8947

Moranrw1@yahoo.com

https://podcasts.apple.com/us/podcast/building-and-protecting-your-business-worth/id1539791693

ONE BIG BEAUTIFUL BILL AND How To Use Some Of The Strategies That Have Come Out Of The Bill.  

by YOUR BUSINESS WORTH, posted in Uncategorized

Thomas J. Perrone, CLU, CIC

Ed Pratesi, the Managing Director of Valuation & Transition Strategies, LLC. I help business owners and their advisors achieve a stress-free process to learn the value of their business, how to increase its value, and the development & execution of a transition strategy or strategies. 

Enhanced expense deduction capability – be careful how you execute – too much of a good thing can leave you cash poor and a tax liability 

QSBS – liberalizing the rules allows C 
corporation business owners to potentially shield 100% of their capital gains on sale. 

– This present gifting scenarios to sort of spread the wealth – couple the prospect of valuation discounts and you have a winner 

With the gift tax exemption rises to $15M 

under the Bill – family wealth planning with SLAT’s and other vehicles are enhanced with valuation discounts. Eepratesi@gmail.com  

JOHN SALEMI. John Salemi: OFFICE MANAGING PARTNER, UHY FARMINGTON CT; has thirty years of professional experience, with a specialization in tax issues and management consulting. John can draw upon his practical financial background in addressing the many managerial problems confronting business owners in today’s complex economic and regulatory environment.Jsalemi@uhy-us.com  

R&D Credits /Depreciation changes /Interest deductions – Section 163(j) 

TOM PERRONE Founder and President of New England Consulting Group of Guilford, Inc.  Estate and Business planning, and Executive Compensation. tperrone@necgginc.com  

•Grantor Trust 

•Non-Grantor Trust (SALT) 

•Decanting OF Trusts for IDIT – SWIPE PROPERTY 

•Cash Flow and Executive Benefits 

listen to the podcast…

https://podcasts.apple.com/us/podcast/building-and-protecting-your-business-worth/id1539791693?i=1000736782334

QUESTIONS TO tperrone@necgginc.com

One Big Beautiful Bill

by YOUR BUSINESS WORTH, posted in Business Growth and Transition, Buy and Sell Agreements, Company Wealth, Estate Planning, evaluations, Executive Benefits, Funding your Buy and Sell, Selling Your Business, Strategies of growing business, Tax Efficient, Tax Free Income

By Thomas J. Perrone, CLU, CIC

This video will give you a good idea of the “One Big Beautiful Bill”, and the strategies that can be employed for the long-term planning

The Trump Administration made life much easier in preserving legacy  for everyone.

If you wish to discuss any of this with me, please use my calendar link

Overview of the BBB and Planning Options and Strategies!

For Advisors and For Business Owners to Utilize. 

Tom covers some of the major areas of the bill, emphasizing income tax reduction and estate exclusion and estate shifting.  He urges estate owners to do planning now  and avoid delaying because although the BBB is now law, it can be changed by congress in the future.  Use it while you have it!

 

https://youtu.be/OgkPRr3JrDE?si=ajHUjvb5fi_hf9xZ

 

For overview of the BBB, click for a download

https://www.allclients.com/Form3.aspx?Key=78B769D475F542B7E20799CD205B9205

tperrone@necgginc.com

Case Study: Rapid Sales Growth and Ownership

by YOUR BUSINESS WORTH, posted in Business Growth and Transition, Buy and Sell Agreements, Company Wealth, Estate Planning, Funding your Buy and Sell, Key People_Or Group, Strategies of growing business, Valuation, Working On Your Business

Case Example Using Term Insurance

By Thomas J. Perrone, CLU, CIC

This was a situation where the company needed protection but wasn’t ready to purchase permanent insurance, even though the situation called for it.  However, the term insurance gave them what they wanted at the time and gave them the needed protection. 

Scenario: 

 A thriving business, comprising three partners—a relationship builder, an idea generator, and a product engineer—experienced remarkable sales growth within a few years. However, a potential challenge arose regarding ownership transfer upon a partner’s death, as all partners shared familial ties. 


To mitigate this concern, a comprehensive stock redemption program was devised and funded through a term insurance policy with a premium exceeding $60,000. This strategic approach enabled the business to navigate ownership transfer complexities and ensure the continuity of its operations.

Through the years, parts of the term insurance has been converted, and the company is paying about $125,000 in insurance premium to fund their liabilities and commitment.  

The case was developed through a relationship i had with one of the owners, through an introduction.  

Lesson:  

Even though this was a start up and a young company, if I has assumed it did not have the cash flow, I would have lost out on all the great potential.  Don’t assume anything, but let your client tell you what they want and why. 

THE WHY: 

There was a past history of the one of the current partners where their family member was part of a company where the partner died.  No planning was done, so the deceased partners family became the new partners.  This was not pretty, and the business ended up in chaos.  Obviously, a motivating factor for the current owner to have a good Buy and Sell Agreement where it was funded 

If you are an advisor who is working with business owners or wants to develop a business market segment in your practice, we should talk. We offer great opportunities working with our organization and deep backup.  

Thomas J. Perrone, CLU, CIC

tperrone@necgginc.com

WHY A BUY AND SELL AGREEMENT FOR AN S CORPORATION IS NECESSARY! 

by YOUR BUSINESS WORTH, posted in Business Growth and Transition, Buy and Sell Agreements, Company Wealth, Estate Planning, evaluations, Key People_Or Group, Selling Your Business

By Thomas J. Perrone, CLU, CIC 

A Buy and Sell Agreement for an S Corporation needs special designs.  

Key Point on Redemption of S Corporation 

  • Special tax needs 
  • Financial security 
  • Triggers that transfer the S corporation 
  • Conflicts 

Also, a proper buy and sell agreement can do the following:  

  • Avoid a fire sale 
  • Create stability for employees and creditor/vendors 
  • Avoid termination of the S corporation status 
  • Avoid costly litigation 
  • Create a market 

This video explains why a proper BSA is needed. It covers many areas when the company has selected S corporation status.  

Summary 

A properly designed buy and sell agreement (BSA) is essential for S Corporations due to unique tax concerns. It is important for financial security. Triggering events can transfer ownership and cause potential conflicts. Such an agreement helps prevent fire sales. It ensures stability for employees and creditors. It also protects S Corporation status. Additionally, it avoids costly legal disputes and creates a market for shares. The document highlights the importance of addressing these areas to keep smooth business operations. 

Buy and Sell Agreement Tutorial

by YOUR BUSINESS WORTH, posted in Business Growth and Transition, Buy and Sell Agreements, Company Wealth, Estate Planning, evaluations, Funding your Buy and Sell, Income from your business, Key People_Or Group, Passive Ownership, retirement, Selling Your Business, Valuation, Value drivers

By: Thomas J. Perrone, CLU,CIC

and Sell arrangements that have emerged since the Connelly case.

The tutorial delves into the rationale behind the utilization of these arrangements and elucidates their advantages.

Furthermore, a comparative analysis of the funding costs associated with different Buy and Sell Agreement structures is presented.

FREE BOOK “UNLOCKING YOUR BUSINESS DNA” FREE DOWNLOAD

https://www.allclients.com/Form3.aspx?Key=4F3D16E276A4EC0C73BFDC182AA06C23

Strategies for Making Your Taxable Retirement Plan – Tax-Free

by YOUR BUSINESS WORTH, posted in Business Growth and Transition, Company Wealth, Estate Planning, Executive Benefits, Key People_Or Group, retirement, Tax Efficient, Tax Free Income

By Thomas J. Perrone, CLU, CIC 

Retirement plans such as 401(k), IRA, 403(b), Cash Balance, Profit Sharing, and other qualified plans are popular choices for securing one’s future. While these plans focus on accumulation and stock market returns, which can be quite exciting, there are significant drawbacks associated with them.

Although retirement plans offer the appeal of disciplined savings and the potential for growth over time, they also come with inherent risks that are often overlooked. These plans, designed to assist participants, can sometimes result in financial shortfalls or unforeseen tax liabilities. The unpredictability of market performance and regulatory constraints may cause participants to question the adequacy and reliability of such strategies. Addressing these concerns proactively is essential for ensuring a smoother retirement journey and providing stronger security for loved ones.

Life insurance can help mitigate these downsides. However, there are several critical discussions that are seldom addressed when dealing with qualified retirement plans:

  • Future taxation: 100% of the funds are taxed upon withdrawal.
  • Death, disability, or termination of the plan: These events can significantly affect the ultimate outcomes for the family. For instance, if the participant dies five years into the plan, the family may not receive the anticipated benefits.
  • Sufficiency: Will the plan provide 60-75% of your final earnings?
  • Contribution limits: Participants may struggle to contribute enough to create the principal needed to achieve the desired percentage, particularly highly compensated employees.

These issues can be addressed effectively by incorporating life insurance into the retirement strategy.

The accompanying video explores some of the most pressing questions regarding retirement plans.

Learn about the JFK ERA benefit plan used for high earners, a plan that will create tax-free benefits with very few restrictions. This is a plan every Business Owner should know about.

Get your FREE REPORT– CLICK THE LINK BELOW

https://www.allclients.com/Form3.aspx?Key=277641709EAD8CD47ED41034FB533AB4

Thomas J. Perrone, CLU, CIC

tperrone@necgginc.com

A Business Owner Committed to Exceptional Service and Effective Communication! 

by YOUR BUSINESS WORTH, posted in Business Growth and Transition, Company Wealth, evaluations, Key People_Or Group, Working On Your Business

By Thomas J. Perrone, CLU, CIC

Romeo Belisle is committed to exceptional service and communication, defying the trend of declining client service and employee mentorship. With a background in the Navy, Romeo values quality above all. He discusses his unique approach to training employees and maintaining constant communication with clients. Romeo’s mission is to ensure quality in all his businesses, enriching both end users and those around him.

Dan-Kar
192c New Boston st
Woburn, MA 01801 Map

Dan-Kar Website

(508) 916-8645 w

romeo@dan-Kar.com

Romeo Belisle of Dan-Kar Corporation in Woburn, MA, is a notable business owner. You can learn more about him on LinkedIn: linkedin.com/in/romeo-belisle-ba364416a

Romeo’s work focuses on helping and serving others, with a vision for business growth that aims to improve life for everyone. Read his LinkedIn profile and you’ll agree. Today, we’ll discuss business, growth, culture, and expansion.

https://podcasts.apple.com/us/podcast/building-and-protecting-your-business-worth/id1539791693?i=1000704913159

Free Ebook; “Building and Protecting Your Business Worth”. Over fifty years of business planning!

CLICK

New England Consulting Group of Guilford, Inc.

tperrone@necgginc.com

An Insurance LLC

by YOUR BUSINESS WORTH, posted in Business Growth and Transition, Buy and Sell Agreements, Company Wealth, Estate Planning, evaluations, Executive Benefits, Funding your Buy and Sell, Inside Sale, Passive Ownership, Strategies of growing business, Uncategorized

By Thomas J. Perrone, CLU, CIC

An Insurance LLC is a limited liability company (LLC) created to own and manage one or more life insurance policies to help meet the obligations under a buy-sell agreement. The Insurance LLC is a new business entity formed under local law, separate and apart from the business or businesses that are subject to the primary buy-sell obligations.  Since the Connelly ruling, Advisors are looking for ways to provide a funding arrangement for buy and sell agreements and the Insurance LLC is another way of providing for the buy and sell arrangements.  

GET YOUR FREE eBook, “Unlocking Your Business DNA”. My published book discussing 50+ years of strategies used to Protect, Create Wealth, Grow business, and Transition the business. Great strategies for advisor and business owner- yours free.

https://www.allclients.com/Form3.aspx?Key=4F3D16E276A4EC0C73BFDC182AA06C23

For Business Owners_ Where You Are?  

by YOUR BUSINESS WORTH, posted in Uncategorized

By : Thomas J. Perrone, CLU, CIC

Have you ever thought about how effective you are in your Business and Estate Planning? 

When I ask business owners how comfortable did, they feel about the current level of estate and business planning up to this point, most of them replied favorably.   However, when I asked them, a few questions related to planning, they didn’t feel so comfortable in the current planning they have done.  

Why does this happen?  It’s like if I asked you how your health is, and you would say, “great”, only because you are not aware of any issues.  However, if I asked you the same question, but only after I did a CT scan, you might not be as confident in your answer since you don’t know how the CT scan worked out.  

The Viewpoint helps business owners have more clarity in their planning and simplicity in the path to that planning.  This video is revealing and helpful in finding the right path of planning.  

LEARN MY BUSINESS STRATEGIES, used for over 50 years in my published book, “Unlocking Your Business DNA”. THIS book will give you great ideas of how to work with business owners, their team. It will change the way you work and help you increase your production in the business market. This book is FREE- DOWNLOAD NOW.

https://www.allclients.com/Form3.aspx?Key=4F3D16E276A4EC0C73BFDC182AA06C23

FOR a Kindle or paperback order on Amazon. All profits go to veteran groups.