If you own a corporation, start planning right now for the eventual sale or liquidation of your business.
Why?
Because, as I’ll explain in my new article, handling your business “goodwill” correctly today, could save you hundreds of thousands of dollars in taxes tomorrow… or many years down the road.
If you want to learn how to legally avoid paying a huge tax on “goodwill value” when you sell or liquidate your corporation, take my advice. Now is the time to read my new article titled Tax Tips: Legally Escape the 50 Percent Tax on Goodwill Value When You Sell or Liquidate Your Corporation.
Three ways our fact-filled article can help you:
- You’ll learn why “goodwill” is so valuable. Simply put, goodwill is the earning power of your business above what your business earns from its assets. In service-oriented businesses like accounting, law, or insurance, goodwill may constitute the lion’s share of the business’s value. According to the tax court, goodwill can arise from seven factors. We’ll tell you what they are when you read the full article.
- We’ll explain why you, not your corporation, should own the goodwill. If the corporation owns the goodwill, then you and your corporation end up paying a huge total tax rate when you sell or liquidate the corporation. That 50% tax rate comes from the double tax you face as a C corporation owner. We’ll explain the details when you read the full article.
- We’ll tell you why you should start planning today. If the IRS comes calling and questions whether you personally own your corporation’s goodwill, you better be prepared. There are two important rules you need to follow if you want to prove your case. We’ll tell you what they are when you read the full article.