This section helps us understand any closely held business interests you own so we can properly account for them in your estate plan. Business interests often involve unique planning considerations, especially when ownership, control, value, or transfer restrictions are involved.
If you own interests in more than one closely held business, you will complete this section separately for each one.
You do not need to have every detail finalized to complete this page. Estimates and best guesses are perfectly acceptable, and we can refine the information later.
Why we ask about business interests
We ask for information about business interests to understand
- how significant the business is relative to the rest of your estate,
- identify any restrictions on selling or transferring ownership,
- plan for continuity of ownership or management if something happens to you,
- coordinate your estate plan with any existing business agreements,
- and anticipate tax, liquidity, or succession issues tied to the business.
Even relatively small or family-run businesses can create complications if they are not addressed directly in an estate plan.
Legal name of the business
The legal name, sometimes called the entity or registered name, is the name that appears on the business’s formation documents. Examples include a Certificate of Formation, Articles of Incorporation, or Articles of Organization. This is the name registered with the state and used for legal and tax purposes.
If you are unsure of the legal name, it often appears on the business’s tax returns or official filings, and it can usually be confirmed through the Secretary of State’s website for the state where the business was formed.
Trade name or DBA
A trade name, often called a “doing business as” or DBA name, is the public-facing name the business uses if it differs from the legal name. For example, a company legally named Smith Holdings LLC might operate publicly as Smith Consulting. If the business uses a trade name, you may include it here.
Ownership vs. control
Ownership and control are not always the same.
- Ownership refers to who holds an economic interest in the business, such as shares or membership units.
- Control refers to who has authority to make decisions for the business. This authority may belong to a manager, managing member, officer, or board of directors.
Some people own a portion of a business but do not control day-to-day decisions. Others may control a business without owning all of it. We ask about both ownership and control so we can understand how the business actually operates.
To determine who controls a business, you would typically review the governing documents of the business, such as the articles of incorporation, bylaws, or operating agreement. These documents usually specify who has decision-making authority and may also outline a succession structure for leadership roles.
Ownership percentage
Your ownership percentage is typically based on the percentage listed in an operating agreement or shareholder agreement, or the number of shares or membership units you own compared to the total outstanding.
If you are unsure of the exact percentage, a recent tax return or governing document may provide the answer. If you still do not know, a reasonable estimate is sufficient.
Value of your business interest
For this questionnaire, we are looking for a general estimate of the value of your business interest rather than a formal appraisal.
The purpose is to understand whether the business meaningfully affects your overall estate planning and whether tax or liquidity considerations may arise.
Business interests can be valued in several ways. Common approaches include:
- the income approach, which estimates value based on expected future earnings;
- the market approach, which compares the business to similar businesses that have been sold;
- the asset approach, which looks at the value of assets minus liabilities;
- and industry-specific valuation methods that may apply to certain types of businesses.
In some cases, such as a solo consulting practice, the business may be worth little more than outstanding receivables. Even in those situations, it is helpful for us to know the approximate value.
Estimates are perfectly acceptable at this stage.
Additional questions on this page
Governing documents
We ask whether written governing documents exist because these documents often determine who can inherit or receive your interest, whether the interest can be sold or transferred, and what happens if an owner dies, becomes incapacitated, or decides to exit the business.
These agreements can override common assumptions about what happens to a business interest at death, which is why it is important for us to know whether they exist.
Business advisors
We may also ask for the name of the business’s attorney or accountant, if there is one. This information helps us understand who else may be involved with the business and where key documents or information may be located. This is particularly helpful when the business represents a significant portion of your estate.