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Baby Boomer Resolutions generating business transfers: CFIB

The Canadian Federation of Independent Business reports that a large amount of business ownership will be transferred over the next five to 10 years, but only a small percentage of the owners have typical written succession plans.

About 47 per cent of the business owners who want to exit their business within the next five years will have to implement 72 per cent project for a small or mid-earth enterprises (SME) to cross out within a decade.

Only eight percent of the survey participants were formal, written and followed. 51 per cent have no plans. 41 per cent of the informal projects were conducted.

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"Due to the fact that a large portion of business owners intend to pass into the new generation, the lack of formal planning creates considerable risks for Canada's competitiveness and prosperity," says CIBBB Research Analysis Survey. Cruz.

In the next ten years, Canada has not been able to make a huge fortune of 1.5 trillion dollars.

The CIFB's conclusion is based on online survey of 2,507 small business owners held last May.

Four cases in five cases indicate that the reason for planning a business for retirement. Move to any other business initiative or to minimize the existing company's profit.

63 per cent of the surveys surveyed will depend on the sale of their business as the source of retirement income.

CFI is a formal successor to develop a timetable to develop the input of professional advisors and a process to resolve disputes.

It recognizes that a successor to the business and entrepreneurs who want to start a new business rather than buy an existing business will create a successor, such as family members who do not want to take over.

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"There are some options in Canada to connect with people who want to buy from business: those interested in buying a business are likely to explore governments," the report says.

By indicating that the taxation regime changes government, small business owners are transferred to family members and behave similarly to a non-family buyer.

The sale of a family member and the capital gain of a non-family seller will be considered as a dividend in the value of the business in the owner's own business according to current laws.

"These laws are discouraging discouraging a family from transferring a business, since this does not include the right to transaction capital gain compensation, so taxing heavily."

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