Of all of the steps a business owner has to take over the course of his or her career, the toughest of all very well might be buying the business and selling it. Though we aren't here to evaluate the actual cost of the business you're looking to buy or sell, we can certainly help give you an analysis of what this purchase or sale you're looking to make will do to your taxes.
Business Purchase Evaluation
We're realistic. We know that you aren't going to be thinking about taxes too much if you're looking to purchase a business. (Though you should be!)
The bottom line for most business owners is the bottom line. How much money can you make in this business?
But all too often, little things in financial statements can be hidden or missed. You should always do you due diligence when it comes to buying a business, and that includes requesting historical financial statements and tax returns for at least a couple years. Bringing that data to us can help shed some light on what you're buying.
We know if you're buying a business that you already see all of the upside. Both Howard and Adam play the role of devil's advocate by nature, and we can search for that hidden information in financial statements and tax returns that you might not be aware of.
Paying the Right Taxes
Especially if you're moving to acquire a business, it's important that you know all of the local laws of your new home. In Florida, for example, a hotel owner who has a restaurant with a bar is going to need to collect sales taxes and tourist taxes on their room rent, a different sales tax on the food in the restaurant and could have various beer and wine or liquor licenses that need to be acquired. And that's before we talk about property taxes, tangible taxes, corporate taxes or income taxes.
Before you sign on the dotted line and buy your business, make sure you know all of what you're getting into from a tax perspective so you don't have that shock later of knowing that you've walked into a mountain of paperwork (and maybe a mountain of taxes!) that you might not be prepared for.
Taxation of Business Sales
No matter what type of asset you're selling, you could be triggering a tax event. Even selling your home can, in some cases, ultimately be a costly tax venture. Selling a business is no different.
Recapturing depreciation, figuring out capital gains or losses, handling potential installment sales and taking care of all the final filings of tax returns are important for business owners who are transitioning away from their business. Before you pull the trigger, make sure you talk to us so we can plan out your exit from a tax perspective.
PRICING
Depending upon the situation, our business acquisition and sale consultations could be absolutely free or could cost a relatively nominal fee. We're happy to sit down and discuss your prospective business with you as a part of our no-obligation, free consultation to offer up some guidance. We only charge you for actual analysis work that you may want us to undertake. Contact us today to set up an appointment to see how we can help you with the buying or selling of your business.