Podcast Episode 6: Structuring Your Business for a Tax-Efficient Sale

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Episode Summary

Brett explains why structuring your business as a C-Corp can be a double-edged sword when it comes to paying taxes–and why you may want to weigh the pros and cons of converting to an S-Corp if you plan to sell your business one day.

I want to emphasize: The entity choice that best suits doing business may not be the best entity for selling the business. Click To Tweet

Episode Highlights

[01:54] Why the best entity for conducting business isn't always the best entity for selling your business.
[03:55] Selling your business as a C-Corp vs. an S-Corp by the numbers.
[08:56] Understanding the IRS's "built-in gains rule."
[10:04] Three options for selling your business to a third-party as an S-Corp.
[11:26] Seven options for selling your business to a third-party as a C-Corp.
[14:47] Why the advantages of an S-Corp are even greater if you plan to transfer your business to your children or key employees.