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Tax and Financial Planning for the Closely Held Family Business

Gary A. Zwick and James J. Jurinski

Tax and Financial Planning for the Closely Held Family Business serves as a manual to help business advisers devise strategies for clients dealing with family issues. Guiding family businesses through the complex maze of organizational, tax, financial, governance, estate planning, and personal family issues is a complex, time-consuming, difficult, and sometimes emotional process. This book focuses not only on identifying the problems family businesses face, but on devising solutions and planning opportunities for both family businesses and their owners. Each chapter of this book contains creative planning opportunities that advisers can suggest and help implement in order to solve real problems in the family business.
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Gary A. Zwick and James J. Jurinski


Family businesses can face financing problems at the initial formation of the business, or years later. Financing problems and illiquidity are a frequent cause of family business failure. Advisers need to keep in mind that financing decisions in a family business may be driven by more complex forces than in similar-sized businesses. In a family business there are few decisions that are purely “business decisions.” Family factors nearly always play a role in decision-making. Sometimes these problems arise because of undercapitalization, cash flow problems, or both. The chapter details debt versus equity decisions, as well as the use of multiple classes of stock. The chapter also discusses the advantages of both bank and non-bank financing, including asset-based lending. Finally the chapter details tax-advantaged financing strategies including Qualified small business stock, ESOPs, and Section 1244 stock, as well as changes made by the 2017 Tax Act.

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