Plan ahead for both your personal finances and your business finances.
Whether you are planning to start a business or already are a business owner, financial planning can help you understand your options and mitigate personal and professional risks as they relate to your finances. As a small business owner, your personal and business finances may be closely tied together leaving you with a high level of risk. This risk can be mitigated through evaluating the structure of your company and whether additional insurance may be beneficial. You may also have to use alternate investment options in place of a 401k to save for retirement. In addition, taxes can become more complicated, requiring an in-depth tax strategy to reduce your tax burden. Your financial advisor can help you evaluate your unique financial situation to identify how to best protect your personal finances and ensure you are on track to achieve your personal and business financial goals.
We help business owners:
- Create a budget and savings plan
- Separate your personal finances from your business finances
- Understand what business structure is right for your situation
- Diversify your risk
- If funding is required, minimize the impact to your personal finances by helping you explore funding options
- Develop a retirement savings plan
- Determine what and how much business and personal insurance coverage is necessary
- Create a business succession plan in the event the unexpected were to occur
- Understand your tax situation (business and personal) and how to minimize your tax burden
- Determine what benefits you may be able to offer your employees (health insurance, retirement plans, etc.)
- Identify a financial roadmap to achieve their long-term goals
Your Personal CFO.
We understand that your time is limited, with much of your focus being spent growing your business. Hiring a financial advsior allows you to have a partner in your finances to help you stay on track for your personal financial goals, while you focus on your business goals.
Common Questions Business Owners Ask
Should I incorporate my business to separate it from my personal finances?
Incorporation allows you to separate your business from yourself. Whether or not you should do and what business structure you should choose may depend on factors such as business goals, risk, and profit. In general, signs that you should consider incorporating your business include a desire to protect yourself and family from added risk, meeting a corporate tax threshold that would result in savings, a desire to make your business more official, or needing access to business loans or lines of credit. An advisor can help you determine if incorporating your business is beneficial to your situation, and if so, what structure would offer the greatest benefit.
A few benefits of incorporating your business include:
- Added legal protection as doing so turns your business into a separate entity and protects you from personal liability (this can protect your personal financial situation)
- Potential tax advantages (e.g. registering as an S Corp can protect you against double taxation)
- Opportunity to separate your business credit from your personal credit, providing you access to business credit cards, loans, and trade lines with vendors
- Access to additional contracts and investors who may choose to not work with unincorporated entities
- Opportunity to pursue investors (investors are not as likely to invest in an unincorporated entity) or even sell your business
Do I need separate financial plans for myself and my business?
Yes! While there may be similarities between your personal and business finances, it is recommended that you keep a clear separation between the two. This is to avoid the legal issues and challenges that can arise when preparing taxes, making major purchases (e.g. a home), etc. As a part of this separation, having separate plans for each is critical.
What steps should I take as a business owner to create financial security in retirement?
As a business owner, especially a small business owner, retirement planning can become a bit more complex. You may no longer have access to a company 401k, which means you would have to work on a separate retirement investment plan. In addition, you should consider options such as your business valuation and succession planning. Working with your Financial Advisor and other professionals can help you determine a path forward.
Mitigate Risk.
If something unexpected were to happen with your business, are your personal finances protected? Your Financial Advisor can help you evaluate what risks exist to your personal situation and what options exist to lessen the risk.
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