Inherited Business

Tax decisions when you inherit a family business

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In-Depth Guides (4)

Quick Guides (32)

1 to 5 Employees
Choose this if the inherited business has between one and five employees. A small team still triggers the full suite of employer tax obligations.
6 to 20 Employees
Choose this if the inherited business has between six and twenty employees. At this size, payroll complexity increases and state-level obligations multiply.
Business Valuation Is the Starting Point
Choose this if you need to determine what the inherited business is actually worth. Valuation is not optional -- it drives estate tax liability, your...
Haven't Decided What to Do Yet
Choose this if you haven't yet decided whether to keep, sell, or close the inherited business. That's a reasonable position -- but the tax code doesn't wait...
I Need to Understand My Options
Choose this if you have inherited a business and are not sure what questions to ask, let alone what the answers are. That is a perfectly reasonable starting...
Inherited 1 to 6 Months Ago
Choose this if the business owner passed away between one and six months ago. Some election windows are still open, but you need to act with purpose.
Inherited 6 to 12 Months Ago
Choose this if the business owner passed away six to twelve months ago. Most immediate election deadlines have passed, so the focus shifts to ongoing...
Inherited C Corporation Stock
Choose this if the deceased owned stock in a C corporation. C corps are separate taxpaying entities, and inheriting stock means you own shares in a company...
Inherited Multi-Member LLC Interest
Choose this if the deceased was one of multiple members in an LLC. Multi-member LLCs default to partnership taxation, which adds layers of complexity when...
Inherited Over a Year Ago
Choose this if you inherited the business more than a year ago and have been operating it since. The emergency phase is over, and a CPA can focus on...
Inherited S Corporation Stock
Choose this if the deceased owned stock in an S corporation. S corps pass income through to shareholders, but the inheritance rules create traps that don't...
Inherited Single-Member LLC
Choose this if the deceased owned a single-member LLC. This is one of the most common small business structures, and it creates a unique inheritance...
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CPA
Always
Basis adjustments, Section 754 elections, entity restructuring, and ongoing tax compliance
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Ownership transfer, operating agreements, and liability restructuring
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Business Appraiser
Sometimes
Fair market valuation for estate tax and basis purposes
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