What to expect from an Asset Sale
Most businesses that are sold in the U.S. are sold as Asset Sales.
In an Asset Sale the seller is the C-Corporation, not the individual(s) and not the plan. This means that all money received from sale of the business must be deposited into the corporate operating account.
As long as the buyer is not related to you and not a current employee of the business, you are free to determine the sale price.
In an Asset Sale, you can allow the buyer to pay you over time. However, in some cases you may not be able to complete — or even start — the plan termination process until you receive the last payment from the buyer.
A crucial step you must take before you agree to complete the sale
You must speak with your CPA/Accountant before agreeing to complete the Asset Sale, because only your CPA/Accountant will be able to tell you exactly how much in corporate taxes you may have to pay if you agree to complete the Asset Sale. You could have to pay up to 21% (the current tax rate) in corporate taxes.
If after speaking with your CPA/Accountant you still want to go through with the Asset Sale, you are free to complete the sale, deposit the money into the corporate account, and then formally begin the plan termination process with Benetrends, Inc.
What happens in an Asset Sale
To find out what to expect in the sale and termination process, download this handy step-by-step checklist.
Not sure if an Asset Sale is right for you?
Visit our Stock Sale Page and our Business Plan Closure page