According to the U.S. Census Bureau’s 2021 Annual Business Survey, just over 25% of reporting businesses in the United States are family owned, and more than 90% of reporting businesses in the United States have fewer than five owners. (Annual Business Survey: Business Characteristics of Respondent Employer Firms by Sector, Sex, Ethnicity, Race, and Veteran Status for the U.S., States, and Metro Areas: 2020, available at AB2000CSCB01: Annual Business … – Census Bureau Table) (last visited Aug. 29, 2023).
Additionally, the largest intergenerational transfer of wealth in American history has begun as baby boomers are starting to distribute their assets, including closely held business interests, to their children. (The New York Times: The Greatest Wealth Transfer in History is Here, With Familiar (Rich) Winners: 2023) (last visited Aug. 28, 2023). Thus, it has become increasingly important to address the needs of those owning family businesses with proper and effective estate and business succession planning, particularly where there is a controlling interest involved.
