What You Need To Know About Capital Gains Taxes On Business Sales

Selling your business brings about many new financial opportunities, but it can also create questions. You may be wondering, “how should I be selling my business and what should I be prepared to do with the proceeds?”

Working with an experienced and qualified financial professional who has guided other business owners through this process is extremely important. Our team is here to help you answer these questions in advance and to address your investment strategies after the fact, too.

All too often people are focused on the possible total profits of selling their business without accounting for the possibility of capital gains tax. Depending on the specifics of your sale, this can go up to 35% of your proceeds. You may choose to use a variety of options, such as a deferred sales trust to avoid having to pay the capital gains tax upfront, or investing those proceeds and earning you interest. In a deferred sales trust, you transfer your business into the trust.