Are you an owner in a Corporation and are considering selling in the future? There are a great deal of factors involved in the sales process and you need to be made aware of all of the potential pitfalls.
- Have you been advised of the tax differences between entity C-Corp and S-Corp types?
- Are you aware of Double Taxation?
- Do you anticipate the value of your business growing over the next 10 years?
Having a business valuation done and converting the Corporation to a Sub-Chapter S-Corp are extremely effective ways to help mitigate the substantial tax burden a business owner will face upon a sale of the business in the future.
Be aware that business valuations need to be completed according to the IRS required standards. Any deviation from these could result in devastating tax implications so shop for quality not necessarily the lowest price. At Paresky Flitt & Company, LLP we work with our clients with situations like this on a routine basis to ensure that the multi-faceted plan is implemented properly helping them keep more of the value they worked for.
Written by Michael Okenquist