20 Golden Nuggets - Protect Your Profits.

15. Tax Implications -  Protecting Your Hard-Earned Profits

One of the most overlooked aspects of exiting a business is the tax implications. Depending on how your exit is structured, you could lose a significant portion of your sale proceeds to taxes if you’re not careful.

Work with a tax advisor to understand your options for minimising tax liability. Whether it’s capital gains tax, GST, or income tax, a well-planned exit can reduce the amount you owe and increase your net gain. For example, if you structure the sale as a share sale rather than an asset sale, you may be able to reduce your tax burden.

It’s also worth exploring tax-efficient ways to reinvest the proceeds from the sale, such as into retirement accounts or new business ventures. A little planning now can save you a lot of money later.

Golden Nugget -  Tax planning is key to maximising your sale proceeds. Consult a tax advisor early to explore options for minimising tax liability.