A business valuation is a vital first step if the tax implications of selling your company seem overwhelming.
This business valuation process is not just an evaluation of your company, which can help you determine an appropriate selling price. It’s also an aid to forecasting potential tax implications of the sale.
When valuation is done properly, it can reveal strategies that will reduce your tax burden. For example, the timing of a sale or the use of tax provisions.
This article will provide you with an in-depth understanding of the factors that you should consider when selling your business. It will also help you navigate potential tax implications.
Download the BizBuySell guide to selling your small business for more information. Download the BizBuySell Guide to Buying a Small Business for more information if you are buying a small business.
What is the business sales tax?
Capital gains are the basis for taxing business sales. This is essentially your profit from selling your business. Capital gains are taxed at the same rate as your standard income tax, making capital gains a form income.
You should be aware that capital gains can push you to a higher bracket of tax, depending on your other income throughout the year.
