Most business owners will come to a time where they want or need to sell their business and move on to their next venture. Before committing to selling a business, it is important to talk to your accountant to have a full understanding of the tax implications of the sale.
Recruiting a business planner can help you structure your business to maximise profits in the lead up to the sale. If you are aware a few years in advance that you need or has plans in selling a business, it provides an opportunity for you to reshuffle your business to maximise profits by adding an additional income stream or removing unprofitable arms of the business.
As soon as the sale of your business is locked in and you are aware of how much money you will receive, it is important to see a financial planner. Endorphin Wealth will help you take a holistic approach to your money, and work with you to determine your long-term plans and financial goals. This means that, when you actually receive the funds, you will have considered what you really want to do with the money rather than making a rash decision.
Some of the opportunities that will be available to you, should you sell your business at a profit, is reinvesting in another business or even achieving financial freedom. Restructuring your business correctly and having an investment plan for the profits can allow you to set up a passive income stream for you to retire early or start a new lifestyle business.
It is important to be aware of the tax implications of selling a business. Make sure you, or your accountant, is familiar with the small business capital gains tax provisions. This is because there are vastly different tax levels depending on the value of your business, and it may actually be more beneficial to sell your business earlier without restructuring or adding further value.
The team at Endorphin Wealth Management is happy to assist with helping you on your financial situation.
For an obligation free discussion, call us on 03 9190 8964, or schedule a meeting at endorphinwealth.com.au/contact/