Preparing for your retirement is part of every businessperson's long-term goal. But what if you are the owner/operator of the business? You have invested money, time, hard work into growing your business and now it is time to step down. What should you do?
When the time comes, you may want your business to continue and prosper, but you don't want the IRS to take possession of your hard-earned gains with estate taxes. Maybe your business has taken a hard fall, and you need to know your liquidation options. In any case, you should plan for your exit well in advance of the day you actually begin your retirement.
Some options that many people consider when preparing to exit a business include:
- Passing the business on to children or other family members or employees.
- Selling the business.
- Liquidating the business and selling the assets.
- Filing for bankruptcy. Sometimes this is the best option for a business that is floundering.
For more helpful information, visit CCH.com's Business Owner's Toolkit. And by all means, discuss your options with a tax professional and a lawyer.