09/17/2026
𝗪𝗵𝗮𝘁 𝘁𝗮𝘅 𝗱𝗼 𝗜 𝗽𝗮𝘆 𝘄𝗵𝗲𝗻 𝗜 𝘀𝗲𝗹𝗹 𝗺𝘆 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀?
What you’ll owe in taxes depends on how the sale is structured and exactly what the buyer is purchasing.
If you sell ownership shares or goodwill, some of the proceeds may be taxed at long-term capital gains rates.
But money tied to inventory, accounts receivable, or depreciation recapture can be taxed as ordinary income instead. And if you own a C corp, an asset sale can trigger tax at both the corporate and personal level.
So if you’re discussing a sale, don’t just ask, “What’s the offer?”
Find out whether the buyer is proposing an asset sale or stock sale, and how much of the purchase price will be assigned to things like goodwill, equipment, inventory, and receivables.
If you’re still 12 to 36 months away from selling, that’s also the time to review your entity structure. Once you’ve signed a letter of intent, your tax options can become much more limited.