Taxes and Selling Your Internet Business

Taxes and Selling Your Internet Business

Taxes and Selling Your Internet Business Tax consequences should be an important part of every business owners exit strategy, especially in today’s political environment.  There are two areas of taxation that need addressing.  One is the structure of the deal, asset sale vs selling a corporation the other is the tax rates associated with those types of transactions.  On the political front, unless acted on by Congress the Bush tax cuts are set to expire at the end of this year.

Income taxes

Income taxes, unearned income taxes, capital gains taxes, estate taxes and more will rise most definitely for those families with incomes greater than $250,000.  Be sure to visit with your accountant from Accounting Toronto firm now for adequate tax planning and if you are thinking of selling your business. But, be sure to speak with a veteran internet business broker to plan your exit.  It is extremely important to understand how the structure of a deal can impact your taxes.

A buyer often with many deals under his/her belt is looking for the best tax advantages.  These same advantages do not apply to the seller.  When it comes to selling your internet business the most advantageous deal structure would be for the buyer to acquire the corporation instead of the assets within it.

Taxes and Selling Your Internet Business In this case the deal is subject to capital gains taxes. Buyers on the other hand, usually on the advice of their attorneys, are reluctant to assume. The liabilities that may come with the corporation.  Buyers would prefer to buy the assets. And structure the deal in which those assets can depreciate at the fastest rate.  It is imperative that when selling your business you work with the experts. So you have a thorough understanding of how best to structure a deal.