Legal Question in Tax Law in California

Typically, the sale of a business will involve many different types of taxes depending upon several factors, including, but not limited to:

- How long you owned it (8 years)

- How much debt and equity is involved

- What type of business it is (service, manufacturing, retail, distribution, etc.)

- Are you selling an entity or primarily the assets?

- What are the assets?

Without a review of all these facts, it would be impossible to answer your question accurately. Generally, the types of taxes applicable in the sale of a business may include capital gains taxes, ordinary income taxes, sales taxes, and even transfer taxes.

Before you sell you business, your best option would be to contact a tax professional to review the proposed sale and properly advise you on the tax implications in order to maximize your realized income from the sale.

You can contact us or any of the other tax attorneys on Law Guru.

Good Luck!