Thanks for taking the time to find out about our connection to Jeffersontown, Kentucky. Jeffersontown is a major suburb of Louisville, with a population of more than 26,000. Not to be confused with the city of Jeffersonville, Jeffersontown is located in Jefferson County, Kentucky. When the Louisville Metro government was created in 2003, the city of Jeffersontown remained independent, making it the third largest municipality in the metro area, outside of Louisville. Jeffersontown is located in southeastern Jefferson County and was first established in the late 1700s as a stopover for early pioneers making their way to the Falls of Ohio.
Jeffersontown had its beginnings in farming
In the 1700s, many farmers in the area chose to cultivate the land, which was later surveyed by Thomas Bullitt in 1773 and then by John Floyd in 1774. Several successful families settled in the area after receiving land grants for their military service, including the Hites, Tylers, and Oldhams.
In 1794, Abraham Bruner bought 122 acres of land in Jeffersontown and, three years later, petitioned the Jefferson County Fiscal Court to incorporate a 40-acre section of his land as the city of Jefferson. However, as its inhabitants frequently used the phrase Jefferson Town, it eventually led to the city’s present name.
Commerce is a huge part of Jeffersontown
With the Bluegrass Commerce Park on 600 acres, approximately 850 businesses call this attractive, park-like location home. The Bluegrass Commerce Park is the largest of its kind in the state, employing nearly 38,000 making it the third largest city of employment in Kentucky. There are seven unique units: Bluegrass Commerce Park, Commonwealth Park, Watterson Trail Industrial Park, Plainview Office Park, Jeffersontown Industrial Park, Holloway Industrial Park, Blankenbaker Crossings. Papa John’s Pizza also has its headquarters in Jeffersontown.
The Chamber Jeffersontown
The Chamber Jeffersontown includes over 850 businesses that pride themselves on working together to help advance the commercial, financial, industrial and civic interests of the community. The Chamber partners with the Jeffersontown Economic Development Authority to ensure the strengthening of the city’s economy. The Chamber also offers the community and its businesses a unified source of information. Our firm is currently a member of The Chamber and was awarded the 2015 Boom Award, Member Business of the Year.
Registering a business in Jeffersontown
If you are a business owner looking to start or expend your business in Jeffersontown, here are a few things you need to know. Once you choose a business name and operating legal entity, then you need to register your business with the Kentucky Secretary of State. If you incorporate your business, you are required to submit Articles of Incorporation. If you are an LLC or LLP, you need to submit Articles of Organization, instead. You should also obtain a federal employer identification number (EIN) from the IRS form SS-4. If you meet any of the have any business entity other than a sole proprietorship or you have employees, you must also register your business with the Kentucky Revenue Cabinet.
Small business and the need for business planning
While an estate plan can protect your assets from taxes and creditors, control how those assets will ultimately be distributed, to whom and when, the same sort of planning is needed for small business. The goal of business planning is to find the most beneficial business entity or organization, prepare for and try to reduce or eliminate taxes as much as possible, and plan for succession of your small business to your heirs or beneficiaries.
Planning for the estate tax consequences for business owners
As most sole proprietors are aware, business assets are basically your assets because you are the business owner. Therefore, your business assets will be combined with your personal assets upon your death, in determining the extent of your personal estate. That is true even when some of the assets are in the name of your business, including property, business vehicles, or machinery used in the business. The fair market value of those business assets are going to be included in your estate for federal estate tax purposes. These are important issues that your business planning attorney should discuss with you ahead of time, as part of your small business plan.
Should you create a limited liability entity for your business?
There are two business entities that can be established specifically for the purpose of limiting a business owner’s personal liability – Limited Liability Companies (LLCs) and Limited Liability Partnerships (LLPs). Owners of these entities have the option of electing to be taxed as “pass-through” entities, allowing them to avoid double taxation. The flexibility of a limited liability entity also allows the business owner to assign income and losses in a way that is the most tax-friendly.
Additional business planning options for a small business
There are many other types of business structures available, which you can discuss with your business planning attorney. You can also discuss the advantages and disadvantages of each type to determine which options are best for your business goals. This way you can select different strategies which can maximize the growth of your assets during the course of your lifetime and ensure proper distribution of those assets after your death.
How you can minimize taxes when you transfer your business
There are different ways to transfer a business, such as an outright sale, installment sale, buy-sell agreements, and outright gifts. All of these methods have their own tax consequences you should carefully consider when establishing your business succession plan. Some worthwhile strategies that business owners can use to minimize transfer taxes include valuation discounts, irrevocable life insurance trusts and the election to defer payment of estate taxes with closely-held businesses. Ask your business planning attorney about the different choices available to you and your business.
If you have questions regarding a small business plan and business succession, or any other estate planning matters, contact Gersh Law Offices, P.S.C. for a complimentary consultation either online or by calling us at (502) 423-7023.