Have you had any thoughts about selling your business within the next few years?
It may benefit you to act sooner rather than later if you’re looking to maximize your payout.
Although it’s early in the election cycle, a number of interesting proposals have already been floated. For example, did you know that an increase in the capital gains tax has been suggested?...a jump from 20% to 39.6%. Should the increase be legislated down the road, business sellers will be impacted. How? Consider the following example and the difference in the tax burden...
As you can see, the suggested bump in the tax rate would almost double the amount due to Uncle Sam and cut into a seller’s proceeds. Your business is an investment and with any investment… it’s not what you make when you sell, it’s what you KEEP that is most important. (Just a Reminder.)
Think about what you could do with $200,000 or more in tax savings?...cover a lot of college tuition payments, vacation home down payment, new venture start-up costs, etc.