Always Good To Think Ahead When Selling A Business In California
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Sales & Dissolutions on Friday, October 21, 2016.
One can imagine the tremendous feeling of satisfaction that accompanies building a successful California business from the ground up. For many business owners, there comes a time when it appears that selling a business is the next logical step to take. However, as such endeavors may present various types of challenges, it is typically best to think ahead before diving in.
An important topic to ponder when considering selling a business is that of potential taxes on the income. There is no set tax rate for money earned through a business sale; various factors determine how much the government gets. In addition to personal income, state of residence and purchase price allocation all play into how much tax will be owed.
Patience may indeed be a virtue when it comes to deciding whether to place a business up for sale. If a business has not been up and running for an extended period of time, some say it is best to wait before selling. Potential buyers are reportedly often more attracted to businesses that have long-standing success and well-established histories.
Anyone thinking about selling a particular business in California may also want to consider what the future might hold with regard to the personal and professional journey. For many, spending every waking moment of their recent pasts working to create and maintain successful businesses leaves them suddenly at a loss when it comes to deciding what to do next in life. Crafting a solid plan is advisable. In fact, a business and commercial law attorney is often able to assist company owners throughout the process of a sale, as well as in creating new business plans.
Source: alleywatch.com, "What to Know Before Selling Your Business", Mark Daoust, Oct. 10, 2016