To ensure a professional practice thrives and successfully continues into the future, succession planning is critical. This paper looks at recent developments and income tax issues associated with:
- admissions – without new equity admissions, the practice dies
- exits – issues surrounding an equity holder’s exit/retirement
- selling the business – what are the income tax issues involved in selling equity/business?
- key issues in merging two practices.
These are looked at in terms of the common structures for both “goodwill” and “no-goodwill” practices.