This part of the questionnaire asks about businesses you own or have invested in, so your plan can account for them. Businesses often need special planning, especially around ownership, control, value, and limits on transfer.
The page notes: Only include information about business entities owned that are NOT publicly traded. Shares you own in a public company belong with your investment accounts instead.
If you own more than one business, complete the page for each one, using Confirm and add next. Estimates and best guesses are fine.
Why these questions matter
Information about your business helps your attorney:
- See how large the business is compared with the rest of your estate
- Find any limits on selling or transferring your share
- Plan who will own or run the business if something happens to you
- Fit your plan with any existing business agreements
- Anticipate tax, cash, or succession issues
Even a small or family-run business can cause problems if a plan does not address it.
The page also asks you to gather any documents you have for the business, such as operating agreements, shareholder agreements, partnership agreements, or bylaws.
The questions on this page
Here is what each question asks, in the order it appears.
Legal name and trade name
What is the legal name of the business entity? This is the name on the documents that formed the business, such as a Certificate of Formation, Articles of Incorporation, or Articles of Organization. It is the name registered with the state and used for taxes.
If you are unsure, check the business’s tax returns or official filings. You can usually confirm it on the Secretary of State’s website for the state where the business was formed.
If this business uses a Trade Name or DBA, please enter that name here. A trade name, or “doing business as” name, is the name the public sees. For example, Smith Holdings LLC might do business as Smith Consulting.
Type of entity and what it does
What type of entity is this business? Choose Corporation, Limited Liability Company, Partnership, or Limited Partnership, or type another. Then Briefly describe what the business does, for example “software consulting” or “commercial real estate holding”.
Ownership and control
Ownership and control are not always the same:
- Ownership is who holds an economic interest, such as shares or membership units.
- Control is who makes decisions. That may be a manager, managing member, officer, or board of directors.
Some people own part of a business without running it. Others run a business without owning all of it. For Who controls this business?, choose who has day-to-day or decision-making control. If no choice fits, leave it blank.
The business’s governing documents, such as its articles, bylaws, or operating agreement, usually say who has control and how leadership passes on.
Your percentage and its value
Your percentage ownership of the total entity usually comes from the operating or shareholder agreement. It can also be worked out from how many shares or units you own out of the total. A recent tax return may also show it. If you still do not know, estimate.
For Value of your percentage ownership of the total entity, enter only the value of your share, not the whole business. A general estimate is fine; no formal appraisal is needed.
Businesses can be valued in several ways:
- By expected future earnings
- By comparing it with similar businesses that have sold
- By its assets minus its debts
- By methods specific to its industry
Some businesses, such as a one-person consulting practice, may be worth little more than the money owed to them. Even then, an approximate value helps.
Governing documents
Do you have written governing documents in place for this business? These documents often decide who can inherit or receive your share and whether it can be sold. They also say what happens if an owner dies, becomes unable to act, or leaves. They can override common assumptions about what happens to a business at death.
The business’s attorney and accountant
You can enter the names of the business’s attorney and accountant, if it has them. This shows your attorney who else is involved and where key documents may be. That matters most when the business is a large part of your estate.
Want to read more?
These articles are optional.
- Estate tax: How the value of a business can affect estate tax. See this article.
- Family property: Keeping a cabin or vacation home in the family, often through a company. See this article.