Selling Your Business: How do I minimize my taxes?
As a business owner, you may arrive at a point where you are serious about selling your business. Typically, there are two primary questions that come to mind immediately. What is my company worth? How can I minimize my taxes?
At Beacon, we have worked extensively, over the years, with numerous business owners who are considering a sale. With respect to the tax question, there are several planning strategies that can be implemented to mitigate state/federal income tax as well as lifetime gift and inheritance taxes. The following article, by BNY Ӏ Wealth, provides a good summary of the various options available so that as a business owner, along with your financial advisor, CPA, attorney, etc., you can make the best decisions for you, your family and business. (Link) https://www.bny.com/wealth/global/en/insights/reducing-the-tax-impact-on-the-sale-of-your-business.html
A word of encouragement…do not wait until the last minute…proactively engage in advance planning to potentially achieve maximum tax savings…otherwise your options may be limited along with the ability to mitigate taxes.
If selling your business is even a remote possibility in the future, we would certainly welcome the opportunity to learn more about you and your business. We can help facilitate ways to address these questions so that you can minimize the tax ramifications of a liquidity event to maximize and retain most of the value you worked so hard to create.
Source: BNY, 10/10/2024
Disclosures: Beacon Advisors Holdings is a registered investment advisor with the Securities & Exchange Commission. Beacon Advisor Holdings Advisors do not provide tax or legal advice. The information in this article is from the specific source cited for reference. It is general in nature, not directed or tailored to any particular person. It is being provided for informational purposes only and is in no way meant to be or even imply the offering of tax or legal advice of any kind. Tax laws vary based upon individual circumstances and can change at any time without notice. This information is being provided as a courtesy and was obtained from sources which we believe to be reliable, but we do not guarantee its accuracy. You are strongly encouraged to consult with your tax or legal advisor regarding the information provided prior to establishing any plan or entering any contract.