When it comes time to sell your business, smart tax planning is essential. And our new article can help.
It’s important to know that when you sell a business that has zero-based receivables and/or self-created goodwill, special tax-planning considerations should be taken into account.
And if you operate as a C corporation, you need extra planning because you may be exposed to double taxation.
Yes, this sounds complicated but we’ll explain everything clearly when you read my new article Tax Tips: Selling Your Business: Zero-Basis Receivables; Self-Created Goodwill.
Three definitions:
Zero-basis receivables are uncollected receivable balances that have not yet been included in taxable income (because your business uses cash-method accounting for tax purposes.)
Goodwill is the value of your business in excess of identifiable financial, tangible, and intangible assets (such as receivables, inventory, equipment, furniture, real estate, software, customer lists, and so forth).
Self-created goodwill is basically the extra value of a business’s good reputation due to the efforts of its owner(s) and might be a delightful asset of the owners rather than of the business.
Here’s just some of what our new article covers:
- Asset sale versus the sale of ownership interest. We’ll tell you which one makes sense for you. Read the full article.
- When asset sale treatment applies automatically. We’ll explain the specific procedures you need to follow. Read the full article.
- A winning strategy to consider. If you’re running a sole proprietorship or a single-member LLC, don’t miss the important information we have waiting for you. Read the full article.
- If your business is a corporation, partnership, or multi-member LLC treated as a partnership. We’ll tell you how to handle things the smart way and come out a winner. Read the full article.
- Special tax considerations for C corporation asset sales that include zero-basis receivables and self-created goodwill. We’ll tell you how to avoid costly double taxation if at all possible. Read the full article.
- A damage control strategy for zero-basis receivables. We’ve got tax-saving strategies that can save you money. Big money. Don’t miss this information. Read the full article.
- A damage control strategy for self-created goodwill. You’ll learn how employment agreements and non-compete agreements can help save you money. Read the full article.