Should You Keep Your Property When You Sell Your Business?

A property being soldThese are some of the questions that business owners ask if they plan to exit their business in Utah. At the same time, they need to deal with the prospect of selling their property or company premises.

Is this year a good time to sell my business in Provo? How will the corporate tax cuts affect a possible company sale in Salt Lake City? You need to get answers to these questions, so you can make an informed decision.

Advantage of Selling

The advantages of a simultaneous sale of your business and company property include more liquidity on your investment portfolio. You would have more funding sources to pay off your urgent financial obligations to business partners and creditors.

If your business premises only serve a particular function, such as for manufacturing purposes, then you should consider selling it along with your company within a specific timeframe. While the U.S. government reduced the corporate tax rate, you should still expect some tax implications of an outright sale.

Financial Requirements

Small businesses should take note that it takes between six and nine months on average to complete a sale. Before you look for a buyer, you should have an organized set of bookkeeping or accounting records. Some buyers may ask for forecast growth estimates within five years, so consider doing that as well.

Capital gains tax, if there is any, will depend on how long you have been the business owner. You may pay a 15% tax if you have the ownership for more than a year. In other cases, it could go as high as 20% if you are in the highest tax bracket.

Business owners must think twice and consult a professional adviser about their plan to sell their company and property, as the pros and cons of selling will both depend on your case.