As an owner, you don’t need to become a tax expert, but you do need to understand the basics of how your business exit will be taxed. There are many factors that influence the taxes on a sale, including the terms of the sale, type of business entity being sold, and how and when the proceeds will be paid to you. 

For example, asset sales are taxed differently than stock sales and S Corporations are taxed differently than Limited Liability Companies and C Corporations. 

In addition, some of the proceeds may be considered ordinary income and some capital gains income. So much to consider. Planning in advance will enable you to minimize the tax bite.

Our member content and tools will:

• Explain how asset and stock sales are taxed.
• Define tax basis or how much of your proceeds may not be taxed.
• Outline the important influence that your business entity type ( S vs C corporation versus LLC) has on your taxes.
• Enable you to understand how deal terms and structure impact taxes.
• Discuss how to minimize taxes on family business transfers.

This is a critical topic for you whether you plan to sell to an outside buyer or employees or “gift” your business to your family members. Our members have saved millions of dollars on their business transfers by planning in advance and taking action to legally minimize their taxes (tax avoidance is perfectly legal while tax evasion is not). BTA provides all of the knowledge you need to avoid paying unnecessary taxes.