When it comes time for selling your business, there are different ways to do so. Knowing the laws about taxation and how it is figured for the sale of a company will help save both parties a lot of anxiety. If the business is not sold in a certain way, the taxes paid by both parties can be quite large.
If you explore the idea of goodwill, you may find that to be the way to go. In business, goodwill means the buyer is paying the seller more money than the total value of all the assets combined. Both parties are able to leave the transaction with more money, as it is taxed in a different bracket.
Since tax law and selling businesses are in and of themselves quite intricate, seek advice from a professional. You may immediately think to yourself that acquiring a business broker is a bad idea and that it will cost you a great deal of money. But it is really the reverse. Yes, there will be an outlay of money for hiring business brokers. But they have intimate knowledge of the transaction you would like to propose. So, by hiring business brokers, you could walk away with more money at the end of the day. In business, the more important figure is what is at the bottom of the balance sheet, not how you got there.
One helpful link is a calculator, into which you can plug all your numbers. It will give you a general idea of how much should be given for the goodwill of the sale.
When seeking the help of business brokers, you should see how much experience they have in this field. One good source to check is Russell Cohen at Murphy Business Brokers. He has nineteen years of experience behind him and knows how to make a sale beneficial to both parties.
Also, it is recommended that you do not speak your staff, competitors or customers that you wish to sell your business. Historically, so much as a whiff of a rumor that you wish to place your company on the market for sale can have devastating effects on your daily business. Place a generic ad for sale, which does not specify what company is to be sold. Once you have found a potential buyer, check the financials before identifying the company and find out their business history.
For additional information or to contact us click on Miami Business Brokers
Cooper City Office
10620 Griffin Rd B-105,
Cooper City, Fl 33328
4720 NW Boca Raton Blvd,
(NW 2nd Ave) D-103
Boca Raton, Fl 33431