Capital Gains on the sale of a business

If you’re thinking of selling your business within the next couple of years you may want to start by talking to Houlihan Smith & Company sooner than later. Capital gains tax is currently at 15% and is likely to go higher pretty soon. According to The New York Sun, ?Mr. Obama is proposing to raise taxes by a staggering two-thirds, moving the rate up 10 percentage points to 25%!? No matter what your political persuasion is, selling a company can leave you with a substantial tax problem.

Many business owners think that when selling a company everything comes down to the selling price. Houlihan Smith & Company knows that everything comes down to how much you actually walk away with. According to Houlihan Smith & Company there are a number of strategies used to greatly influence the outcome. Structuring a company for sale isn’t just about the selling price, its about everything you do to correctly structure the company, the sale of the company and how the business owner will receive payment. Business owners overlook a number of legitimate strategies to reduce the amount of taxes owed from selling a company which have nothing to do with the seller carrying paper. Planning is the most critical element when selling a company. No one can change the structure of the sale after the taxable event.

According to Houlihan Smith, business owners give far too much to the taxman because they were either focused on the selling price or they received poor advice from people and even so called professionals that didn’t understand the scope of strategies available to them.

To make sure that you fully understand the options available to you, you should contact Houlihan Smith & Company.

Houlihan Smith is an investment company that participates in various banking activities, according to their official Web site, such as: ?? financial opinions, financing, merger and acquisitions advisory, and other corporate advisory services.? The company is also a member of the Financial Industry Regulatory Advisory (FINRA). The Web site also says that Houlihan Smith has helped many companies with their financial issues and that they have also participated in more than 500 capital restructurings, ESOP advisory engagements, bankruptcy services, merger and acquisitions and private placements.

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