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If we take these topics in order, death is first.  While that may seem a bit odd, as we usually think of death as the last issue we have to deal with, and in fact the last issue we want to deal with… which is why we are often uncomfortable discussing it or planning for it, death is ultimately inevitable.

For closely held businesses, death of the owner (or death of a key owner) can be a catastrophe unless a succession plan is in place.  The plan will allow for a smooth transition from one generation to the next, or from a group of owners to a new mix of owners.  Of course the potential of death is not the only reason to have a succession plan.  If you want to bring children, employees, or other owners into the business in order to retire, a plan will expedite that.  If there are multiple owners, even unrelated ones, a plan will deal with how to handle the retirement of one of those.  I have worked with several businesses in the past where one owner wanted to retire, the others were unprepared to buy the retiree out, and the retiree sold their share to a new owner that the other original owners were ultimately unable to work with.  That resulted in poor business performance which hurt all parties and in some cases in litigation. 

A succession plan can avert some of those difficulties by providing a methodology and a funding mechanism for a buyout, and pre-agreed formulas for valuation of assets.  If you “Google” ‘business succession planning’ or ‘management succession planning’ you will find a multitude of free sites that provide detailed information.

With regard to taxes, NOW is the time to plan for the 2008 tax year, as well as make some last minute adjustments if you have not yet filed your 2007 taxes.  You still have the opportunity to make some 2007 tax decisions if you have not yet filed that return.  For purchases of equipment you have the option of a write-off (section 179) or various forms of depreciation.  Knowing how the economy affected your business in 2007 and will then continue to affect it in 2008 (and possibly 2009 if the more conservative economic forecasts are correct), you can determine if you want (or need) the deduction in 2007 or want to carry some of it forward (depreciation) for when the economy picks up again.

Some of the tax rules have changed for 2008.  You can check www.irs.gov or meet with your accounting or tax professional to discuss how to take the most advantage of them.  Planning now how to deal with purchases, write-offs, employee benefits, and retirement programs will help you project your cash flow for the balance of the year. 

Political reality implies that the government’s actions regarding business and the economy and the tax structure will be different next year.  Candidates of both parties are promising change, albeit each has a different view of what is needed to “fix” the economy.  Whether you are interested in the other aspects of the political campaign or not, you should pay attention to the business-related proposals as whoever is elected will attempt to enact their version (assuming Congress approves it), and that version will affect your business.

The websites you might want to check (in addition to general news sites) include tax watch sites, the U.S. Chamber of Commerce, the National Federation of Independent Businesses,  your local Chamber of Commerce, and appropriate trade association sites.  If your industry takes a position on a candidate’s proposal, you might want to support the position and / or the candidate in a number of ways ranging from an e-mail to a letter-writing campaign, to a campaign contribution.

For a “big picture” view of what the federal budget looks like and where your tax dollars go, see: http://www.thebudgetgraph.com/site/index.php?main_page=product_info&products_id=1&zenid=bed14411699eb4c027ea5a2ce71eb19b

Follow the directions to zoom in and out.

Remember: Your future is what you make of it.