Whether you are just beginning a business, selling a business, or simply considering how to pass your business to your family members or others, you will be advised of the many options available to you, as well as the tax implications of each option.
Choosing the right entity may be the most important decision a new business owner will make, especially when the income tax considerations of a sale of the business are considered along with the income tax considerations applicable to annual earnings. Which entity offers the best all around tax benefits from formation through sale and/or dissolution?
Business transition planning, whether to family members or other co-owners should always be considered at the same time as the formation of the entity. Don’t wait until an event occurs such as death or disability to decide how to respond.
Think of an agreement addressing death, disability, withdrawal or sale to an outsider as being similar to an antenuptial agreement, and sign it before you say, “I do.”