Currently, Washington State taxes the estate of residents who die with over $2,000,000 in assets. Many small businesses owners will have estate in excess of this amount and may face an estate tax liability which could threaten the success of the ‘family’ business. For most small business owners, their company represents not only their job and source of income but also a significant portion of their estate value. A large estate tax bill could force the liquidation of the business or could saddle it with a large debt, which reduces the value of the business. To avoid this, the state of Washington allows owners of family owned businesses meeting certain requirements to transfer their business free of tax to a qualified heir, which can include family members and a long term employee. If you are a small business owner, you may want to learn more about this option to assure you can protect your business.
Small Business and Estate Taxes
