Finance: Selling Your Business: $500,000 or More… NOW What?

October 31, 2008

Congratulations! You found the expert, determined the person or entity you are selling your business to, now what? Are you selling to an insider, gifting to a child or selling to third party? There are tax consequences you certainly want to minimize. Depending on the value of your company and who you are selling it to here are some of the strategies you may want to take a closer look at:

• Deferred compensation
• Increased retirement funding
• ESOP

To an outside party, we want to get as much as we can get. To an insider, we want to have the lowest defensible value. You may have run your business a C Corporation all of these years. Now you may wan to take advantage of the taxation of a S Corporation. Did you know the look back period is 10 years? It’s important not to guess. Here is a great reference website, http://www.irs.gov/

Thank you for letting me be a part of your success!

-Anne Groth, Guest Blogger
  View more posts by SCORE’s Guest Bloggers

Filed under: Finance, Managing, Planning, Success

Tags: Finance, IRS, retirement, selling business, taxes