This article are provided for information purposes only, and are not intended as legal advice.

Tax implications on the sale of a business

November 3rd, 2008

Do you have estate taxes? Will your estate incur taxes on your death? Do you have to pay probate fees? In some countries, you can have two wills to minimize probate fees, do you know what are the rules in your area?

I have seen many cases where the owner of the business has small children but no will. What happens to the business on his death? What happens if he and his spouse both die in the same accident? If you have no will, then what? The business may not have any signing officers. I saw one business where the 33 year old owner died without a will. The banking documents said that only the President could sign the cheques. The President had died, there was not spouse. Since there was no will, a new President could not be appointed quickly and the bank called the loan. The business was then closed. Did the deceased person intend this to happen, probably not.

Filed under: Buy a business — Gary Landa @ 11:04 am

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