What's the most tax efficient way to sell a business?
If you're burned out or want to cash out, here's how to exit a business without paying taxes:
Don't Sell
If you're burned out or want to cash out, here's how to exit a business without paying taxes:
Don't Sell
Install competent management who can do the work of running the business for you.
Then you can then take that summer off you've wanted for years.
Or you can stay involved, doing only what you enjoy.
But what if you want to cash out?
Then you can then take that summer off you've wanted for years.
Or you can stay involved, doing only what you enjoy.
But what if you want to cash out?
To cash out tax-free:
Get a bank loan against the business. You can likely get 2-3 times EBITDA without a personal guarantee, tax free.
Now you have a lump of cash to invest, you still own the business and you can stay involved in the business (if you'd like) or not.
Get a bank loan against the business. You can likely get 2-3 times EBITDA without a personal guarantee, tax free.
Now you have a lump of cash to invest, you still own the business and you can stay involved in the business (if you'd like) or not.
Added benefit: If you do decide to sell your business later on, by installing management and stepping away from the day-to-day, you've greatly increased the value of the business to potential investors. You've expanded your options and the value of your business.
Motives for selling a business are many and there are just as many ways to minimize the taxes.
This was from my white paper "8 Ways to Minimize Taxes When Selling a Business"
Download here: ventouxholdings.com/white-papers
This was from my white paper "8 Ways to Minimize Taxes When Selling a Business"
Download here: ventouxholdings.com/white-papers
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