86 Freeze

Many corporate re-organizations start with what is called a Section 86 “Freeze.” This is a process by which the current owner(s) value is frozen at a certain point of time, and the future growth of the company is then sold for nominal consideration to other family members, such as spouses and children. There are a number of tax issues that must be taken into account, but when done carefully the result is the new owners (including the original owner or owners) may now participate in the profits of the company by way of dividends which may be shared (subject to certain conditions) amongst owners.

To discuss if a Section 86 Freeze might be a good option for your business, Contact Us today.