BERKELEY HEIGHTS, N.J. (TheStreet) -- Small-business owners spend a lifetime building their business. They work countless hours growing it into something of value. When the owners decide to sell, it is critical for them to do some tax planning to maximize their net proceeds. This is even more important for small-business owners when their business is their single biggest asset.When selling a business, some of the key considerations from a tax perspective are:
|Small-business owners who sell their company need to understand how and when payment streams will be taxed.|
- The sale structure: asset vs. entity sales
- A payment stream: lump sum vs. installment
- A covenant not to compete
- Future compensation
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