When it comes time to sell a business or a business interest, every owner has the same question: How can I minimize the tax on the gain? Oftentimes, inexperienced tax advisers do not consider all the options available to sellers of business interests because they fail to completely understand their overall economic objectives. In other instances, the adviser is simply too inexperienced to recognize the options that might exist and how they could be employed to the advantage of their client.
When you choose Sisterson, you can be sure that we will first obtain a complete understanding of your tax and overall economic situation and goals before we make any recommendations. We understand how to help owners reduce or defer tax on the sale of a business by using a number of techniques, and obtaining an understanding of the “big picture” is the first step in that process.
We will also look at the type of consideration offered by the buyers. We can help you assess the benefits and risks of these options.
Another consideration in selling a business is whether the buyer wants to purchase assets or equity interests. Depending on the buyer’s preferences, we can work to develop a strategy that will maximize the seller’s after-tax proceeds.
Selling the assets or equity interests of a business that is taxed as an S corporation or a partnership can create many complex tax issues for the seller that an inexperienced tax adviser may completely overlook. Employment contracts executed in connection with the sale of a business, the allocation of purchase price among the assets acquired, and reporting the transaction to the Internal Revenue Service are major concerns of the seller. The professionals at Sisterson thoroughly understand all of the tax issues that can arise for the seller (and the buyer) in these transactions because of the extensive experience we have in this area.
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