I wanted to own my own company so for years I collected business cards of company presidents. My plan was that if I collected enough of these “important” cards, someday I could have this title on MY card. I have to say, it didn’t happen overnight as it took a couple of years, but by a strange quirk of fate, an opportunity arose from a very unexpected source and I became President of my own company!
Do you call this luck or positive expectations? Would it have happened with or without my business card collection? I leave that decision up to you. It is like why do I buy expensive face moisturizers when a little Crisco would do the same thing (per my husband). Well, maybe the Crisco would work, but is it worth taking the chance? Your choice. Do you visualize? Does it work for you?
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:
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!