Monthly Archives: January 2017

Avoiding Excess Tax! On the Sale of Your Business

Small business optimism is at a record high after the recent elections. Owners see opportunity for growth, and reduction in taxes and regulations. See the complete article HERE. It should also be a great time to sell your business. But if you are looking to sell your business, you need to be planning your “Exit Strategy” now.

Most small business owners run their business for years with one thought in mind, “Minimize my taxes and provide the most money to me”. Tending to keep whatever type of entity they started with (Corporation, S Corporation, LLC or Sole Proprietorship), they keep taking every advantage to shelter income from taxes, because they know how to do it for the type of entity they have.

After several years, they decide it is time to sell. If they have not spent time with their professional advisors (CPA, Attorney, Financial Advisor, and Business Intermediary), other than at the end of the year for tax purposes, they may be shocked to learn that there is a big tax liability due.

Exit planning should be done five years before the sale of a company. This rarely happens, but if you take one thing away from this blog, “START doing it Now” if you think you might sell in the next five years.

I want to briefly discuss two items that can cause an unnecessarily large tax bill on the sale of a business. The first deals with tax on the type of company entity. Most small businesses under $5 Million in value will be sold as an “Asset Sale”. There are many reasons for this, mostly dealing with the financial and legal liabilities of a sale of the “Stock or Shares” of the company. If your C Corporation is sold in an asset sale, the tax you pay may be twice what it would be on the sale of an S Corporation or other pass through entity like an LLC. You can, during the exit planning phase, elect to treat your Corporation as a Subchapter S. Here is the kicker, it must be done five years before the sale of your company.  Another area to watch is “Recapture”. When you use accelerated depreciation to minimize taxable income, you may have a big tax bill upon the sale of your company. This can be minimized, but the planning must start long before the sale happens.

At Emerald Coast Business Intermediaries, we believe in working with professional advisors in a team approach to business transfer. You, as a business owner, should also. After all, when you sell a business, it is not only the price, but how much you get to keep.

Emerald Coast Museums, Wildlife & Cultural Arts Centers

The Emerald Coast provides a wide variety of cultural arts and entertainment that is enjoyed by all ages. The area has an abundance of museums, wildlife centers and art & theater avenues. In addition to the various centers, you will find some type of cultural event happening during most weekends throughout the year!

Air Force Armament Museum : The museum at Eglin Air Force Base has early aviation armaments from WWI to today’s high tech aircraft. There are collections of weaponry and cockpit simulators.
100 Museum Drive, Eglin Air Force Base

Baker Block Museum : Journey through the past to gain an understanding of the life, heritage and history of our local region. Learn about lumbering, farming, land development, naval stores, local military patriots and more.
Corner of Hwy 189 & State Rd. 4, Baker, FL 32526

Cultural Arts Alliance of Walton County: Several events including 30A Songwriters Festival, ArtsQuest, South Walton Fashion Week and more are presented throughout the year at different venues in Walton County, FL.

Destin History & Fishing Museum : The exhibits include a 1925 fishing boat, a collection of antique rods and reels, and vintage photographs of boat captains and their boats that present the history and journey of Destin from a small fishing village to a major tourist attraction.
108 Stahlman Avenue, off Hwy. 98 by the Destin Bridge

Emerald Coast Wildlife Refuge Zoological Park : ECWRZoo serves as a sanctuary and lifelong home for native wildlife and exotic animals that have been abandoned or abused. The zoo is home to over 130 animals of 35 different species, including tigers, lemurs, and endangered species from six continents.
5262 Deer Springs Drive, Crestview, FL (8 mi. E. of Crestview on Hwy. 90)

Emerald Coast Science Center : The facility has 4 exhibit rooms and 2 classrooms on 2 acres. New robotics exhibits were installed in 2014 and 2015. In 2017, a new exhibit featuring our local Emerald Coast ecosystems will be installed and a renovated reptiles and amphibians exhibit will be installed.
31 SW Memorial Parkway Fort Walton Beach, FL 32548

Gulfarium Marine Adventure Park : This is one of the world’s oldest marine animal parks celebrating 61 years. Enjoy dolphins, stingrays, reptiles, seals, gators, penguins, otters and the lovable sea lions. There are dolphin and sea lion shows, encounter experiences and indoor aquarium exhibits.
1010 Miracle Strip Parkway SE, Fort Walton Beach

Heritage Park & Cultural Center : This park includes the Indian Temple Mound Museum, Camp Walton Schoolhouse Museum, Garnier Post Office Museum, Fort Walton Temple Mound and the Civil War Exhibit Building.
107 Miracle Strip Pkwy. SW, Fort Walton Beach, FL

Mattie Kelly Arts Center (at NW Florida State College): All of the 1,650 seats in the main theater at the Mattie Kelly Arts Center at NW Florida State College are no more than 90 feet from the stage! Artists from theater, dance, music and comedy present top entertainment for the area.
100 College Blvd., Niceville, FL

Mattie Kelly Arts Foundation : All areas of art outreach are provided through educational programs, workshops, camps and live performances.
The Mattie Kelly Cultural Arts Village, 4323 Commons Dr. W, Destin, FL

For more museums in the Panhandle go to:

https://www.tripadvisor.com/Attractions-g1438845-Activities-c49-Florida_Panhandle_Florida.html