Thinking of selling your business or passing it on to your heirs? Smart planning is critical. Be sure to consider how to sell your business in a way that achieves your goals, both today and tomorrow. This three-step plan helps ensure that you’re thinking about the right issues in advance of the transition.
- Consider the costs of supporting your current and future lifestyle. Tally up today’s and tomorrow’s financial obligations.
- Determine what you want to do now. Retire? Start a new business? Get a job? Stay on as a consultant to the business you’re selling?
Structure a plan to make your future vision a reality. Among your potential income sources are:
- First pay capital gains taxes on any cash proceeds from the sale in the year(s) in which you receive them.
- Then protect and grow the remaining capital, in order to provide for your future needs.