Finance

Can we pass our business down to our children for free without any tax consequences?

min read
Opinions expressed by Entrepreneur contributors are their own.
A preliminary problem you have is that, as a sole proprietorship, your husband has no business to transfer. Whether the business goes to your sons or otherwise, if there's no separate entity, the business cannot legally exist without the owner (in this case, your husband). In addition, whether and how you can ultimately transfer an entity to your children tax-free depends on the form of entity, the (cost) basis in the entity, and your personal tax situation. I would suggest you consult with both an accountant and an attorney who are experienced in succession planning issues.

More from Entrepreneur

Corene Summers helps clients advancing their health, careers and lives overall through reducing stress, tension and optimizing sleep.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Starting, buying, or growing your small business shouldn’t be hard. Guidant Financial works to make financing easy for current and aspiring small business owners by providing custom funding solutions, financing education, and more.

Latest on Entrepreneur