Many business owners and their accountants are absolutely fixated on minimizing taxes by showing no income. But this can be misguided planning for trying to get top dollar when selling the company.
Business owners need to
realize valuation is usually determined by a multiple of identifiable cash flow
and that banks make acquisition loans based on tax returns.
Not paying
taxes can be a short term strategy that might not pay off at the end!
Do you have small
business questions you would like answered about this article or others? Please visit www.LibertyBusinessBrokersofOntario.com
or call 519-903-7807.
William Sivell is the Owner and Broker of Record of Liberty Business Brokers of Ontario; his blog appears
every Tuesday.