Transfer business to son

The key issue in the transfer of your business to your son is whether or not you are giving it to him or he is buying it from you.  If he is giving it to you then you need to be careful of the possibility of the transfer resulting in the assessment of a gift tax on the transaction.  Gift tax is a tax many people are not even aware of.  Ifthe business is worth more than $17,000 then you may owe gift tax on the transfer.  $17,000 or less is currently exempt from the tax.  You can also structure the transaction to avoid the tax in certain circumstances.  You will also need to ensure that any licenses to operate the business are transferred to your son.  I have represented dozens of business buyers and sellers over the past 20 years so my advice - get an experienced business transactions attorney to help you do this the right way.