Comments for Selling a business Info

Comment on Tax Implications of Selling a Business in Ontario, Canada by Omar Kettani

Omar Kettani — Mon, 25 Jul 2011 20:35:48 +0000

Rob, the one-lifetime tax exemption has a long list of conditions. Not all businesses qualify. I would suggest talking to a lawyer to see if you would qualify. I have serious doubts that a non Canadian resident would qualify.

Comment on Tax Implications of Selling a Business in Ontario, Canada by Omar Kettani

Omar Kettani — Mon, 25 Jul 2011 20:31:56 +0000

Hi David,

Since I am not an accountant, I would strongly advise that you consult with an accountant specialized in taxation for business transfer. My first thoughts are that you don’t have to sell 100% of shares in order to take advantage of the one lifetime tax exemption. It has to be a share sale however. You could explore a situation where you sell the partner 50% of shares and then increase the capital for future growth. A tax expert will certainly help you structure the partnership to minimize the tax impact.

Comment on Tax Implications of Selling a Business in Ontario, Canada by David

David — Mon, 25 Jul 2011 20:24:15 +0000

I am an incorprated small business. I would like to bring a partner for 5o% of business. How would you structure this sale of the half of business.( Or does it have to be a sale? )
What are tax implication of the sale of shares ( or does it have to be sale of shares? )

Thank you.

Comment on Tax Implications of Selling a Business in Ontario, Canada by Rob

Rob — Mon, 25 Jul 2011 18:17:30 +0000

Can you let me know if Canadian citizens who are non-residents of Canada at the time of the share sale, are also entitled to the $750K share sale exception ?

Comment on Tax Implications of Selling a Business in Ontario, Canada by Omar Kettani

Omar Kettani — Tue, 12 Jul 2011 01:48:54 +0000

Hi Sam,

As I said in my comment below, if you sell the shares and if your business qualifies for the one lifetime share sale tax exemption then each of the selling partners will pay very little tax on the first $750,000 they received, if they haven’t used this exemption before. You can email me to omar (at) torontobusinessbroker (dot com) and I will email you the contact info of a tax specialist that I worked with in the past.

Comment on Tax Implications of Selling a Business in Ontario, Canada by Sam

Sam — Sat, 09 Jul 2011 17:33:10 +0000

Hi Omar,
My partner and I are selling our half of the business to a new partner. How much tax can we expect to pay on 1.2 million? can you recommend a tax expert?
thanks

Comment on Tax Implications of Selling a Business in Ontario, Canada by Omar Kettani

Omar Kettani — Sun, 29 May 2011 15:07:42 +0000

HI Jennifer,

Thanks for your comment on our blog. Tax matters are very complex and are specific to unique individual situations. I strongly suggest you talk to an accountant familiar with the the tax aspect of selling small businesses. If your business is located in Ontario, and if it qualifies for the one lifetime $750,000 tax exemption, and if you haven’t already used this exemption in previous transactions, then you would probably pay very little tax on the sale of your shares (on the first $750,000). I know some tax experts who specialize in the transfer of businesses. They are definitely not cheap but the their are worth their cost.

Good luck.

Comment on Tax Implications of Selling a Business in Ontario, Canada by Jennifer

Jennifer — Wed, 18 May 2011 01:34:50 +0000

I am looking to sell my shares in my business for around 450 plus inventory around 150 around how much tax would I pay on it.

Comment on The art or “science” of business valuation by Selling a business Info - Calculating Your Company’s Goodwill Value

Selling a business Info - Calculating Your Company’s Goodwill Value — Mon, 28 Mar 2011 23:48:01 +0000

[...] all tangible assets and the remaining (if any) is the value of Goodwill. In some circumstances the company value is less than its asset book value, so there is no goodwill value [...]

Comment on Tax Implications of Selling a Business in Ontario, Canada by Omar Kettani

Omar Kettani — Sat, 19 Mar 2011 19:09:14 +0000

Thanks Peter for your comment. I suggest you contact an accountant with experience in the sale of small businesses. Calculating the taxes you would have to pay if you sell your business can get very complicated and depends on your personal tax situation.

I wish you good luck.