Selling Goodwill tax Consequences

Tax Implications of Selling a Business in Ontario, Canada  November 1, 2010 – 07:35 pm
Try Business Tax Insider Today

At the time of selling their company, business owners are more interested in knowing how much money they will keep after the sale than what price they will get. Tax can have a huge impact on the proceeds from the sale. Since tax regulations vary among US states and Canadian provinces, we will focus on Ontario in this post.

This post provides some general information about the tax repercussions of selling a business but is not intended to replace professional advice from Lawyers, Accountants and Tax Experts. Business sellers should to seek competent professional advice concerning tax and liability matters when contemplating the sale of their companies.

From a tax perspective, a business owner shall first make a decision about the structure of the sale: Share sale vs. Asset sale:

Share Sale: The company is sold as a whole. The new shareholder becomes the Buyer who takes over the company including both its assets and liabilities. Therefore, all company debts are also transferred to the buyer. Other company stakeholders such as employees, customers, suppliers etc. are not affected since the company remains the same. There is only a change in share ownership.

  • Tax implications: As a seller, you pay very little

Source: Selling a business Info

You might also like:

TYT Episode - January 28th 2010
TYT Episode - January 28th 2010
President Obama Takes Questions at GOP House Issues Conference
President Obama Takes Questions at GOP House Issues Conference
Economic Forecast 2013
Economic Forecast 2013

Your opinion you can keep - let's see some data

You know man, there's a lot of people who can think for themselves. If you really want to share this data and the data is factual, then post it, or link to it. What you've posted is a bit like an editorial. It's your take and I personally prefer to do the interpretation myself. I can tell you that the studio I moved in to in 1998 was priced at $725 then and it's being advertised at the low low p...explain this course of action though I can admire their committment to their chosen course of action regardless of it's financially unsound nature.
I must say the landlords aren't garnering a whole lot of goodwill these days. Hooray for Rent Control. Up with tenent rights and down with landlord tyranny. Speak your mind publicly or forever hold your piece (spelling intended).
markoff

Does RIM's Patent Shelf Life Affect its Valuation?  — Trefis
Given RIM's own price per patent valuation at a similar multiple as the Nortel deal, and a 27% premium over the Motorola Mobility deal, Envision IP calculated the remaining patent terms of each patent portfolio to understand one of the reasons why RIM …

6 Ways to Work More Effectively in the US Patent System  — Law.com
Finally, participants recognized the increasingly important relationship between data sets and patent valuation, litigation strategy, risk management, and investment, and therefore found that working with third-party advisory sources could be useful in …

McGraw-Hill How to Start and Run an eBay Consignment Business
Book (McGraw-Hill)

Research In Motion May Burn Close To $1B Cash On BB10  — Seeking Alpha
If you assume that the entire handset business including all inventories is worth $1B, coupled with a decreased network value of $1B, and a very conservative patent valuation of $2B, RIMM is still worth $10. The only scenario that matches a $6 …

Silver Investing and Precious Metals in the Age of Fiat
Silver Investing and Precious Metals in the Age of Fiat
Senate Session 2011-06-14 (14:15:21-15:36:12)
Senate Session 2011-06-14 (14:15:21-15:36:12)
SURVIVING PRECIOUS METAL TAX CONSEQUENCES FOR SILVER
SURVIVING PRECIOUS METAL TAX CONSEQUENCES FOR SILVER !!!
McGraw-Hill How to Sell Anything on eBay . . . and Make a Fortune!
Book (McGraw-Hill)
New Riders Publishing Homepage Usability: 50 Websites Deconstructed
Book (New Riders Publishing)
Viva Media S.T.A.L.K.E.R. CALL OF PRIPYAT - COLLECTOR'S EDITION [Old Version]
Video Games (Viva Media)
  • S.T.A.L.K.E.R.: Call of Pripyat is the third entry in the acclaimed S.T.A.L.K.E.R. series
  • Action gameplay combined with strategy and tactical elements, with single- and multi-player modes
  • Photorealistic graphics depicting the devastated area surrounding the Chernobyl reactor
  • Gigantic game world offers total freedom of action, with over 70 custom missions and extended side quests
  • Collector s Edition includes area map, tech-tree poster, stickers, and more

Research In Motion May Burn Close To $1B Cash On BB10  — Seeking Alpha
If you assume that the entire handset business including all inventories is worth $1B, coupled with a decreased network value of $1B, and a very conservative patent valuation of $2B, RIMM is still worth $10. The only scenario that matches a $6 …

House Session 2011-12-16 (13:44:29-15:06:09)
House Session 2011-12-16 (13:44:29-15:06:09)
Partnering for Prosperity: A Discussion on Economic Enhancement (Part 1)
Partnering for Prosperity: A Discussion on Economic Enhancement (Part 1)
Silver Prices in the Event of a Comex Default
Silver Prices in the Event of a Comex Default

Related posts:

  1. Selling goodwill
  2. Selling goodwill to a company
  3. Selling Goodwill Items
  4. Selling Goodwill tax
  5. Selling corporate resources