Use of a Franchise Business as a Family Tax Planning Strategy

Suggesting the use of a franchise business as a vehicle for family estate and tax planning. Specifically using as an example, The Car Wash Guys, a portable car wash franchise, where you will be purchasing a completely designed and outfitted car wash truck and the right to develop a specific city or regional area with out of pocket start-up costs between $25-50,000. There are many other types of mobile franchise busiensses in the same general price range due to competitive market components.

Many questions on the minds of parents wishing to establish and perpetuate multigenerational estate assets for growth and eventual transfer. Programs they wish to develop can range from the simple gift to complex estate restructuring.

How can you help your children start a business that does not have extreme start-up costs, extensive asset liability and has a greater chance of being profitable?

What type of business could you establish, nurture and grow, that has a greater chance of being successful, increase in value over the years and is easily divisible among children with different management abilities, different interests in owning or running a business and who live in different cities?

What type of business can be owned and operated by a family limited partnership that wishes to diversify their holdings and add a "business interest" to insure qualification by the IRS for the valuation discount when gifting minority interests?

Family Gifting Using the Annual $10-20,000 Exclusion Gift Per Child

Usual gifts are the funding of IRA's, pensions, additions to stock, bond, mutual fund or annuity accounts, purchase life insurance, fund education or special travel expenses. There is a desire for these gifts to be productive, protective, have long-term value, distribute income and have growth potential. A franchise business addresses all these issues.

Why not help your heirs purchase a mobile type franchise, such as a Decorating Den, Oil Butler, Dog Grooming Franchise or perhaps a Car Wash Guys franchise business? Two parents can gift in one tax year the out of pocket start-up costs to purchase this business. The other costs can be financed. When there are several children that live in different cities or just have different ideas of how to run things, the purchase price of this franchise business is low enough so that each child can have their own business. To accommodate the annual exclusion gift amounts per heir for families with multiple children and grandchildren and for families that wish to establish business area dominance, arrangement can be made with These types of mobile franchises like the Car Wash Guys can be purchased for several cities or several regions. If you discuss this strategy with the franchisors of such businesses they can assist you in accomodating your needs, after all they also want to sell franchises and extend their brands in as many places as possible.

Planned Asset Transfers To Children

Assets managed by parents for later transfer to their heirs include securities investment portfolios, real estate portfolios and personally owned business interests. There is a desire for these assets to have a greater chance of maintaining their success, increase in value over the years and be easily divisible so that all the children can be treated individually and fairly. A franchise business addresses all these issues. And when selecting an appropriate opportunity, why not make your new business venture an adventure full of personal growth, civic recognition, financial reward, fun and enjoyment for all.

Why not purchase a multiple city or multiple region Mobile Franchise franchise business? As a franchise purchaser you will be joining a proven system so that no prior business experience is needed for your new venture. You will be putting more odds for success on your side. As a Franchisee purchaser you will be joining a dynamic team that will enable you to be in business for yourself but not by yourself. A franchise business has an established 'floor value' that should increase over time with good management. The Car Wash Guys franchise can easily be broken up into individual cities or regions or organized and managed from the beginning as different cities and regions so that your heirs, who each have different interests and abilities, who may live in different cities across the country and who don't want to be tied to their siblings or to one project in one city, can receive a separate and complete business interest. This is possible now in a variety of franchised businesses.

The Family Limited Partnership

Effective estate planning is intended to provide for family members and others, while minimizing taxes and expenses. Intergenerational transfers and gifts often involve assets with joint ownership, partnership and/or other types of multiple person/entity ownership. There is a need to limit family and asset liability exposure. Many families create a family limited partnership that provides a means to own, manage and maintain control of assets while providing a vehicle for the orderly transfer of wealth to a younger generation. They transfer various personal, securities, real estate and business interests into this partnership. In the future it may be necessary for family limited partnerships to own and participate in an 'active business' to insure qualification by the IRS for a valuation discount when gifting minority interests to your heirs. What type of business can families with varying business backgrounds as well as varying interests in owning and running a business purchase to insure IRS qualification?

Why not have your family partnership purchase a multiple city or multiple region franchise business? This would be a mobile business so there is no business property to own, lease or negotiate as well as no need for property to use as a store or office. In some mobile franchise businesses there is no need for a telephone answering service or additional telephone lines as this business comes with a nationwide 800 number and pagers. Calls for your business are received via this number and alphanumerically paged out to you or your staff. And there is no need for inventory, warehouse or shelf space as all equipment and supplies to run your business fits and can be stored on your truck. The ease of starting and owning a mobile franchise busienss or a business like the Car Wash Guys franchise business makes it a practical and rewarding addition to a family's assets. You can start small and grow as your family grows or start regionally and continue your family's life long legacy of quality and domination. Think on this concept.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs

---

Trading For A Living - Part 2

In part 1 of this article I started to look... Read More

The Power of Small Numbers: Trading Success is Based on Consistency, Not Home Runs

Online trading is so seductive - just sit, click, and... Read More

Four Key Components To Building A Trading System

Need some insight on what you should really be striving... Read More

When It Comes To Investing, Asking The Right Questions Can Help You Make The Right Decisions

Are you ready to open your pathway to financial independence?Well... Read More

Success Trading for New Traders: What Does Bid and Ask Mean?

Do you ever wonder exactly what's going on in the... Read More

Options Made Easy and Investor Education - Simple Enough for a 10 yr Old Kid

How many of you out there think that the market... Read More

Dont Catch a Falling Knife

One of the most common mistakes made by inexperienced investors... Read More

Shop More, Save More for College Gimmick or Reality?

The man sat in a chair beside a dressing room... Read More

How To Find An Investment Advisor

Do you think you need an Investment Advisor? Hold on... Read More

Creating a Financial Future - Putting Your Plan Into Action Part 1

This column has previously discussed "picturing the future that we... Read More

Is a SEP Plan Right For Your Business

A SEP is a special type of IRA. Under a... Read More

Forex market offers opportunity and information

The forex market is what is called an international exchange... Read More

How To Create Wealth In The Stock Market

First and foremost, an opportunistic strategy for creating wealth in... Read More

Oil and Gasoline Price Uncertainties

The Light Crude Continuous Contract hit an all-time high at... Read More

Investing and the Fear of Regret and Greed

People tend to feel sorrow and grief after having made... Read More

Five Sure Fire Way to Secure Your Financial Future

"You can be poor when you're young, but you can't... Read More

Eight Questions to Ask Your Financial Advisor

You may like your financial advisor, but is he really... Read More

What is an Investor Ready Business Plan

A Business Plan, as all good entrepreneurs starting out in... Read More

Keep Stock Market Investment Profits

Have you had one of those huge investment winners ?... Read More

5 Things To Know About The Stock Market

50% Of U.S. Households Invest In The Stock Market Individuals... Read More

California Deparment of Corporations and Franchise Opportunities Law

What CA Needs To Do To Address Issues in FranchisingWe... Read More

Learn How to Lose and Risk Management

One of the leading traders on Chicago Mercantile Exchange, because... Read More

Investing in World Markets

There are many different ways to invest in world markets:... Read More

Reasons For Joining An Investment Club

Whether you're a novice investor or an experienced stock picker... Read More

Mutual Fund Selection Made Simple By Indexing!

Non-indexed mutual funds try to keep it secret that actively... Read More

Seven Investment Terms Everyone Should Know

For those who have never given their financial future a... Read More

Rolling your 401k: Contributory IRA vs. Rollover IRA

In an ideal world you would start your working career... Read More

Investing In or Owning Drug Lab Properties

Clean Up (includes the insides and the outside of a... Read More

Preholiday Trading

The Light Crude Continuous Contract closed at $66.13 a barrel... Read More

Why You Need To Buy and Sell Gold Coins (Part 3)

Putting Rare Coin Market Cycles to Work for You...Until recently... Read More

Advice for International Investors on How to Safeguard Their Profits

What are the risks?Today, investors are increasingly turning to global... Read More

Waiting 20 Years Can Cost You Millions - Dont Wait Start Today

Many Young people live for Today. They really don't fully... Read More

Help with My Annuity

The cries are heard from the distance, "I need help... Read More