Selling Your Business? This Choice Could Save You $250K in Taxes #shorts

A lot of people ask is it better for me to be incorporated versus a sole proprietorship? And really the answer is going to be it depends. Does it make it easier for me to sell my business? Not likely easier to sell it, but there definitely are some benefits if you structure your exit properly. One such example would be if you are one individual owner of a business, you're selling it for $500,000. If you sell that corporation or the shares of that corporation, you would qualify for your lifetime capital gains exemption, which means you wouldn't pay tax on that sale. If you sell as a sole proprietor, you would be paying tax on that sale, likely at a tax rate of about 25%. So if you're looking at selling, you want to make sure that you talk with a qualified CPA and tax expert because you could be saving yourself a quarter million dollars if you sell the business in the right structure. So that would be the primary benefit of selling a business as a corporation versus being a sole proprietors.