State Taxes - Because the States have radically increased their spending in the past decade, there has been a push to increase taxes imposed on business. State tax issues are now an important consideration since states are charging higher taxes and decoupling from the Federal Tax treatment of LLCs.
Selling your business? Defer — and possibly reduce — tax with an installment sale You’ve spent years building your company and now are ready to move on to something else, whether launching a new business, taking advantage of another career opportunity or retiring. Whatever your plans, you want to get the return from your business that you’ve earned from all of the time and money you’ve put into it. That means not only getting a good price, but also minimizing the tax hit on the proceeds. One option that can help you defer tax and perhaps even reduce it is an installment sale. Tax benefits With an installment sale, you don’t receive a lump sum payment when the deal closes. Instead, you receive installment payments over a period of time, spreading the gain over a number of years. This generally defers tax, because you pay most of the tax liability as you receive the payments. Usually tax deferral is beneficial, but it could be especially beneficial if it would allow you to stay...
