Retiring from small business
Selling a small business can be a challenging, complicated and uncertain time. So too can retiring. Combine the two and you have a situation where early planning and advice is critical. Small business retirement can take some time.
The earlier you plan for the sale of your business, the more value you are likely to gain. Selling a business can take up a lot of your time but so can addressing the day-to-day demands of running your business. Trying to do too much of both at the same time can mean you don’t manage either properly.
Craig at HQB Financial Solutions can step the process into small tasks keeping you on track and within your time frame. Small Business Retirement Planning is well worth your investment. For more information contact Craig here.
There are a range of things that may need to be addressed early on with the assistance of your accountant or solicitor. Key examples include:
- ensuring the financial accounts are in order
- obtaining a valuation of the business
- determining the potential tax implications if the business is sold
- considering whether the business should be restructured before the offer for sale, and
- preparing or amending the legal and/or other documentation to facilitate the sale.
Manage capital gains tax
When you sell your business, you may be eligible to claim certain capital gains tax (CGT) concessions. For example, you may be able to disregard 100% of a capital gain made on the sale of your business if you:
- have owned the assets for a continuous period of 15 years or more
- are at least 55 years of age, and
- are disposing of the asset for retirement purposes or are permanently incapacitated.
Alternatively, if you don’t meet the above conditions, there are other concessions that you may be eligible to use that could reduce or eliminate any taxable capital gain on the sale of your business.
You should consult with a registered tax agent to determine the CGT implications, whether the small business concessions will be available to you and which ones should be claimed.
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