Make sure you sell your business correctly / Djb Realty, LLC
The dream has finally come. You are sitting at the closing table about to recieve your payment for years of building your company. All those long hours, met deadlines, successes and setbacks...all about to come to an end. You are about to get the golden ticket to retirement.
The closing attorney hands you a check for $5,000,000.00 for the sale of your business and says...congratulations.
You smile and then are hit with the nightmare.
You get informed that because the business structure was allocated in the most common fashion by your business broker and advisors that you should make sure to set aside up to 40% of that check for taxes due.
What?!!!
Now here is the sad part.
Most if not ALL of those taxes may have been avoided or delayed with proper sales structure. Remember selling a business is not as easy as signing on the dotted line.... it is WHAT dotted lines you are signing.
The importance of a TEAM is of upmost concern when buying a business for due dilligence, proper liability structures, finance, etc., however it is sometimes MORE important for the business owner selling a successful business to maximize your NET proceeds after taxes due.
Structuring a sale correctly is far beyond the scope of this Blog, however the point trying to be made is for YOU the business owner to not except the status quo. Ask...no..take that back...DEMAND that you have the right team in place working for your best interests. You have spent a lifetime building your business....don't lose 40% of it due to improper planning that can easily be avoided.
Djb Realty, LLC is a boutique business brokerage and investment real estate firm specializing in assisting business owners and entrepreneurs achieve their goals and objectives in various arenas. Visit www.DjbRealty.com for a full list of services and contact information.