Do Not Overlook Tax Considerations When Selling Your Business – Tax

When the COVID-19 pandemic first hit, economic uncertainty
caused many business owners contemplating a sale — as well as
many prospective buyers — to put their plans on hold. Now
that there is some light at the end of the pandemic tunnel,
interest in buying and selling businesses seems to be picking

If you are thinking about selling your business, be sure you
understand the tax implications. The way that your business (as
well as the transaction) is structured can impact your tax bill
and, therefore, your net proceeds from the sale. Here are some
issues to consider.


If your business is a corporation (either an S corporation or a
C corporation), deciding whether to structure the transaction as a
stock sale or an asset sale may have a significant impact on its
tax treatment. Generally, a stock sale is preferable from the
seller’s perspective. That is because when shareholders sell
their stock, the…

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