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Selling a business and tax

Discussion in 'Small Business' started by OldElliottE, 28th Dec, 2015.

  1. OldElliottE

    OldElliottE Member

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    So...what's the best way to structure a business sale so best implications for myself? Mostly goodwill and not so much IP or Plant and Equipment? Any general advice since my accountant is on holiday and I spontaneously decided to sell a business lol! Contract of sale being done up tomorrow! I have a small CGT loss to offset some capital gains.
     
  2. headsonbeds

    headsonbeds Well-Known Member

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    Look up selling "active assets" on the ATO site. There's a few options
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Best not to draw up a contract until you get tax advice.
     
    York likes this.
  4. pinkboy

    pinkboy Well-Known Member Premium Member

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    There are many things to consider when selling a business.

    Definitely should be consulting both your accountant and solicitor before signing anything. Perhaps draw up an agreement on the major terms like price, settlement, inclusions etc - and make sure its unbinding.

    Then, after consulting your advisors, draw up the proper binding contract.

    How is the business structured? Company?

    pinkboy
     
  5. wogitalia

    wogitalia Well-Known Member

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    Stop, that's the only advice I would give you right now.

    Seek your accountants advice, how have you valued the business? What structure is it in? Have you ticked the boxes to sell as a going concern? Should you be using Super as part of the sale? There are so many factors to consider that rushing into a sale is, quite frankly, a stupid move.

    What could possibly be driving you to sell a business completely unadvised and ignorant to everything? You're not giving your accountant any chance to help you and whatever advantage you think you're getting by selling it recklessly fast may very well come back to bite you in the ass when the taxman comes knocking.
     
    pinkboy likes this.
  6. OldElliottE

    OldElliottE Member

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    Cancer. That would drive me to sort out stuff quickly.
     
  7. wogitalia

    wogitalia Well-Known Member

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    Well that sucks! Having said that, it's still not a reason to throw away money to the tax man that can be avoided with an hour long meeting. Even if your accountant is unavailable there will be one somewhere who is willing to help you, even at this time of year.