Legacy Accounting LLP

There is one question I think every incorporated business owner should ask their accountant:
'Do the shares of my corporation qualify for the Lifetime Capital Gains Exemption today?'

If the answer is yes, ask how that status is being monitored.

If the answer is no, ask why.

- Is excess cash creating an issue?
- Are investments or other passive assets involved?
- Does the corporation need time to satisfy a historical test?
- Is qualification even appropriate for your circumstances?

You do not need to become an expert in the technical rules.

But you should know where you stand.

Uncertainty is much easier to deal with five years before a transaction than five weeks before one.

The $1.25 MILLION TAX EXEMPTION Opportunity for Business Owners You spent decades building a successful business, and received an o...

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The firm's expertise extends beyond traditional accounting to encompass agribusiness, new business structuring, estate and tax planning, business succession, and corporate tax planning. 🌾📈 This diverse range of services ensures that Legacy Accounting LLP can support clients at every stage of their business journey, providing invaluable insights and strategic planning to foster growth and sustainability. 📈🌟

With decades of experience, Legacy Accounting LLP remains committed to delivering exceptional service and fostering long-term relationships with its clients. ❤️

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Time creates options.

I keep coming back to that principle because it shows up in almost every area of succession planning.

The Lifetime Capital Gains Exemption is a good example.

Some qualification rules depend on the history of the corporation and the assets it has held over time.

If an owner waits until a Letter of Intent is sitting on the desk before asking whether the shares qualify, the planning conversation can become very different.

The best time to prepare for an unexpected offer is before you receive one.
You do not need to know exactly when you will sell.

You need enough time to preserve your options if the opportunity arrives sooner than expected.

Secure Your Business’ Legacy Learn proven strategies to transition your business smoothly and protect what you’ve built for the next generation.

Do you know whether the shares of your corporation qualify for the LCGE today?

Simply owning an incorporated business does not automatically mean your shares qualify for the Lifetime Capital Gains Exemption.

That is one of the most important things I want business owners to understand.

The LCGE can potentially shelter a significant portion of the capital gain on qualifying shares. But there are specific rules, and some of those rules look back over time.

That means this is not something you necessarily want to start thinking about after someone has already offered to buy your business.

In Episode 11 of Legacy: The Business Succession Podcast, I look at the LCGE from a broader perspective: not simply as sale planning, but as exit planning.

Because every owner eventually exits. Sometimes through a planned sale. Sometimes through a family or management transition. And sometimes through a deemed disposition on death.

The real question is not: 'Am I selling today?'

It is: 'If something changed tomorrow, would my business be ready?'

The $1.25 MILLION TAX EXEMPTION Opportunity for Business Owners You spent decades building a successful business, and received an o...

At Legacy Accounting LLP, we understand that navigating shareholder and partnership agreements can be a complex and daunting task. 🤯 Our team of experienced professionals is dedicated to simplifying the process for you, ensuring that every detail is meticulously handled to protect your interests. 🛡️

Whether you are forming a new partnership or revising an existing agreement, we provide tailored solutions that align with your unique business goals. 🎯 Trust us to facilitate seamless transactions, resolve potential conflicts, and offer strategic advice that keeps your business running smoothly. 🔄 Let us handle the intricacies so you can focus on what truly matters—growing your business. 📈

🌐https://www.legacyllp.ca/services/business-advisory/new-business-structuring

If there's one idea I'd take away from Episode 10, it's this:
The best business sales don't start when an offer arrives.

They start years earlier.

You build a company with:
Strong management.
Transferable customer relationships.
Reliable financial information.
Documented systems.
Organized records.
And less dependence on the owner.

Then, when the right buyer eventually appears, you're negotiating from a position of preparation rather than reacting under pressure.

That's how you create options.

That's how you create leverage.

And ultimately, that's how you give yourself the best opportunity to protect the value you've spent decades building.

Next episode, we'll move even further upstream and look at what you can do years before a transition to maximize business value, reduce risk and create more options when you're eventually ready to exit.

Get the MAXIMUM VALUE in Your Business Sale In this episode of Legacy: The Business Succession Podcast, host Ja...