Planning Your Exit: Strategies for Business Owners to Maximize Wealth and Minimize Taxes (Five Questions To Ask Yourself)

While we, as business owners, tend to be very good at managing and building planning for our lives after owning the business, whether forced due to illness or injury or by choice to exit into a more restful pace of life can become an afterthought that causes us to miss out on our best lives later.

• Do you wonder about the financial implications of a potential sale?

• Maybe you figure you will never sell it; you will pass it down to your family. How would that work?

• Do your successors share the same zeal for the business as you do? Are they ready to take the reins when the time comes?

• Is that business also your retirement plan or a big part of it?

• Maybe you own real estate. Is that real estate most or all of your retirement?

As a small or mid-sized business owner, retirement, passing down the business, or selling out might be on your mind. But how can you do this without giving the government a significant portion of your wealth? Let’s explore some strategies.

Think about how you might structure the sale. Paid out over time vs. one lump sum, or any other potential ways to stretch when and how you pay those taxes.

Think about how things are categorized: Goodwill is essentially taxed at a reasonably high rate, but if you can allocate more of the sale price to certain hard assets in the business, there may be a tax advantage.

Further considerations regarding tax deductions that may be able to be moved from one year to the next and finding out whether you qualify for the (QSBS) or Qualified Small Business Stock exclusion, which may allow you to exclude part of the sale from Federal taxes.

Have you ever thought about diversifying your assets for retirement planning? This could involve exploring investments in different industries or passive income-generating ventures. Such a strategy can act as a safety net when your business income becomes uncertain or in the face of significant business disruption.

Reach out to us at https://guardianrockwealth.com/contact/ Call us at (561) 327-4646 Or reach out directly to us at jbrowning@advocacyinvesting.com Having a quick discussion about things to consider can be a great use a few minutes of your time.