Family business & family pool

In almost every (entrepreneurial) family, sooner or later the thought of Succession and perhaps also the question of whether and how to involve family members in the business – usually the children or grandchildren. We support and guide Business succession within the family – for virtually all types and sizes of business. With a team of specialists in company law, tax law and inheritance law, you can rely on our comprehensive expertise to work with you to achieve your goals in the best possible way.

In family-run businesses, succession is usually handled by a a so-called family business established. In principle, this can be set up and structured in any legal form. The most commonly used legal form for a family-owned company, alongside the GbR and the KG, is the GmbH & Co. KG. The latter combines the benefits of limited liability with those of a partnership and can be structured for both commercial purposes and purely for asset management – such as the management of property or capital assets.

Even following the amendment to the Inheritance and Gift Tax Act, generous exemption rules continue to apply to commercial and self-employed entrepreneurs, meaning that, in principle, almost all entrepreneurs or companies that do not (solely) manage their own assets can also transfer the entirety of their business assets tax-free. To ensure this, early and careful planning and implementation are absolutely essential, as there are many pitfalls that could irrevocably undermine the effectiveness of such arrangements.

Focus on tax considerations and the preservation, safeguarding and growth of assets

In addition to tax considerations, the focus is usually on preserving, safeguarding and growing the assets. Particularly when younger family members are brought into the business, we recommend that contracts between the shareholders and the company include so-called safeguard clauses in favour of the „existing shareholders“. For almost all types of company, this allows the wishes and expectations of both the transferring and the incoming generations to be comprehensively safeguarded.

The aspects relating to company law and taxation should not be considered in isolation, but rather in a comprehensive and interconnected manner – as they are, to some extent, interdependent.