How to Choose a Tax Professional for the Sale of a Business

The tax consequences of selling a business can depend on entity type, asset allocation, installment terms, depreciation recapture, goodwill, state tax, and how the transaction is structured. This is planning work, not merely return preparation.

Engage the tax professional before signing

Once purchase agreements and allocations are fixed, many tax consequences may be difficult or impossible to change.

Ask about entity-specific experience

The analysis can differ substantially for sole proprietorships, partnerships, S corporations, and C corporations.

Ask about asset versus equity sales

The seller and buyer may prefer different structures. A tax professional should be able to model the after-tax consequences of alternatives.

Coordinate with legal counsel

Tax terms need to align with the purchase agreement, representations, indemnities, and transaction documents.