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.
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.