What Do You Do After Selling Your Business?
Selling a business is a time-intensive process that brings with it new circumstances for both the buyer and seller. For the buyer, familiarizing themselves with the terms of sale can be daunting, and the future of the business can be uncertain and challenging. For the seller, it may be difficult to know how exactly their assets and ownership is transferred over, and what timeline they are working with. Thankfully, our experienced team at Sunbelt Business Advisors, greater Bay Area, is committed to helping you sell your company in the most seamless way possible.
Here are some suggestions of what to do after selling your business:
Take a Break
Selling a business can take up much of the seller’s time. Taking a break after the whirlwind of activity is important. In some cases, the transition period may take over a year before you are ready to tackle the next challenge. It is important to plan for this year-long gap when deciding how to manage your funds after selling.
Create a New Balance Sheet
Once your business is sold, it is important to keep an eye on your balance sheet. Given you have sold off a source of incoming revenue, it is important to see where you stand equity-wise, and plan for future living expenses and tax obligations. With a detailed balance sheet, you can gain an accurate assessment of your financial condition and identify any issues that require urgent attention.
Business sellers can get overwhelmed with the sheer paperwork involved when selling a business. In order to ensure that you have documented all the details that went into the selling process, we recommend you invest in a bookkeeper. Hiring a bookkeeper may help you find important documentation you may have been unaware of, and organize everything you need into a manageable system.
Get an Estimate Taxes Owed and When
After selling your business, it is important to get an estimate of your tax liability. Your liability may be due over a period of several years or deferred for a longer period of time. There are various tax strategies available for you, and understanding them may be very beneficial. With a proper understanding of these issues, you can meet your tax obligations with optimum savings and potentially increase your net worth in the short term.
If you are preparing to sell your business in Santa Clara County, San Jose, CA, or So. Alameda County CA, call us today at 408.436.1900 or complete our contact form.