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Success in Business Succession: MM&C’s Peter Randolph Presents at Maryland State Bar Summit

Posted July 2, 2024 at 11:55 AM

Business & Tax, MM&C Happenings, News & Events

In early June, MM&C’s Peter Randolph joined Venable’s Daniel Mendelsohn for a presentation on business succession and business transfers at the Maryland State Bar Association’s Annual Legal Summit.

The comprehensive presentation covered practical and tax implications of business transfers pre and post-mortem.

The well-attended presentation started with an overview of planning for business succession, providing tips on when and how to begin — including legal, managerial and financial preparations to be considered. The presentation also outlined tips for limiting personal liability. One of the most important considerations at the outset is determining who has decision-making authority and control before, during and after the transition phase. Questions such as who makes the decisions moving forward, and what the specific timeline for transition will be (will it happen over time or immediately) are just a few of the important items to be addressed. Randolph and Mendelsohn cautioned that specificity is critical to avoid misunderstandings and potential challenges. They also reviewed ownership structuring options (outlining the advantages and disadvantages of each), types of exit strategies, and tips to minimize taxes.

“The most important consideration is adequate preparation and planning for the outcome you envision,” Randolph said.  “Consulting with a tax planning professional for the most tax-efficient strategy is also key to avoid tax traps and other risks,” he added.

Randolph also discussed scenarios in which certain major tax consequences could be avoided even after the principal’s death and closed with some specific strategies for converting from certain legacy S-Corps to LLCs while minimizing tax consequences in order to facilitate transfers to the next generation and key employees. He encouraged those in attendance to reach out to him and Mendelsohn with any further questions.

Peter Randolph is a Principal in Miller, Miller & Canby’s Business and Tax practice group. His multijurisdictional practice is focused on taxation, business, and probate and trust administration. He advises small businesses on partnership and corporate taxation, corporate governance, buy-sell agreements, reclassification, restructuring and succession planning. With nearly two decades of comprehensive experience, he provides in-depth knowledge and expertise to craft effective strategies tailored to each client’s individual needs.  To learn more, contact Peter at pdrandolph@mmcanby.com or (301) 762-5212.

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