Home »

[Lei Lei]

Getting Out

There are all types of reasons for you to get out. The business you picked might not have been right for you. That doesn't necessarily mean that buiness is not right for you. Maybe you didn't plan properly. Maybe it was not what you expected. Maybe the balance between home, business and yourself wasn't as balanced. There are many reasons for you to sell or get out.

• Plain English Guide To Getting Out Of Business
  
  Learn where and how to get professional help.
• Planning Your Exit
  
  If you've never given any serious thought to exiting your business, now is the time to start. Exiting is a multi-step process that can take from weeks to years depending on the size of the organization and the reasons for exiting.
• Closing a Business
  
  Find procedures for getting out of business, including what forms to file and how to handle additional revenue received or expenses you may incur.

It is more than just important to know how, when, and how much to sell your business for. There is a big difference between properly preparing your assets to be sold and putting a for sale sign on the front door. Knowing the difference can pay big dividends.

• Seattle Chamber Of Commerce Resources For Selling A Business
  
  Major issues to consider before deciding to sell your business.
• Seller Financing
  
  With as much as 90% of the sales of small businesses involving at least some seller financing, it may be unrealistic to expect to receive a lump sum payment. Yet financing can be tricky, as agreeing to a long period of payments entails the same type of risk as owning the business and depends on the business' future success. Alternatives may include getting the buyer to use non-business assets as security for the loan.
• Employee Stock Ownership Plans (ESOP)
  
  One way to sell the business to your employees is through an Employee Stock Ownership Plan (ESOP). ESOPs are tax-qualified employee benefit plans that invest primarily in stock of the employer. Significant tax advantages may be available to both an individual selling the business to an ESOP and the employees participating in the plan. The many tax incentives and benefits of employees having ownership in the business make such plans attractive even when business owners wish to sell only part of their businesses.
• Selling To The Public: Initial And Direct Public Offerings
  
  Primarily used to raise investment capital, Initial Public Offerings (IPOs) and Direct Public Offerings (DPOs) may be a way of maximizing the return from the sale of your business.
• Sales Agreement
  
  Checklist of items that must be on the written sales agreement.
• Make Sure The Price Is Right
  
  Find out what your business is worth before entertaining any offers.
• Finding A Buyer
  
  Once you've decided how much your business is worth, the next step is to find a buyer.
• When It's A Seller's Market
  
  Take a look at what happened to 22 companies previously featured in Inc. magazine's For Sale column.

Transfer of Ownership

Thoughtful succession planning is important for all businesses, particularly family-owned businesses. Working with an accountant and an attorney will help you understand the tax consequences of the transfer and develop a succession plan that will work best for your situation.

• Estate and Gift Taxes
  
  If you give someone money or property during your life, you may be subject to federal gift tax. The money and property you own when you die (your estate) may be subject to federal estate tax.
• Management In Family-Owned Business
  
  (PDF file)
  
  Business succession planning provides business stability, tax savings, and, most of all, peace of mind. However, developing an effective plan requires hard work, discipline, communication, and teamwork.

Liquidate Assets

Selling business assets, especially under trying or forced circumstances, can be difficult. However, knowing what to do and how to do it when it comes to selling company assets can help return the most value. You deserve to get as close to market value for your assets as possible.

• Asset Liquidation
  
  Before you terminate your lease, sell a key piece of equipment, or disconnect your utilities, make sure you review this liquidation sale checklist.
• FTC's Internet Auction Guide
  
  Make sure you understand how Internet auctions work before you embark on this course of action.

File Bankruptcy

Deciding to file for bankruptcy can be a painful decision. However, it is a choice that sometimes must be made. To protect yourself and your business, educate yourself about this course of action before such a choice is made.

• IRS Bankruptcy Tax Guide
  
  Debt cancellation, tax procedures, and considerations for different types of business structures are explained.

Official Closing

When the decision is made to close a business, there is more involved than just locking the doors. Learn what actions should be taken.

• Closing a Business - Closing Procedures
  
  Find forms and information with regard to filing an annual tax return for the year you go out of business, reporting the disposal of business property, and other actions you will need to take depending on your business structure.

Getting out of your business may not be important to you at this point. However, planning your exit strategy often involves more than just closing down. Within this section we'll discuss practical options that include selling your business or transferring ownership. In the event that you decide it is time to close your business, you'll learn about liquidation, filing bankruptcy and reviewing the IRS guide on shutting down.