Before You Sell Your Business, Call These 3 People

A business sale can be the biggest check of your life. Here's who Grant says should be in the room before it happens.

“Who should I talk to before I sell my business?”

The short version

  • Your tax advisor: get an idea of what your potential tax liability may look like.
  • Your financial adviser: budget out that money and set some aside for taxes.
  • Your attorney: there's no telling what legal foothold you may walk yourself into.

The short answer

Before you sell your business, call three people: your tax advisor, your financial advisor and your attorney.

1. Your tax advisor

Work with your tax professional to get a clear picture of what your tax liability could look like.

2. Your financial advisor

Your financial advisor and your tax advisor should work hand in hand. If you're about to take a large profit, your financial advisor should help you budget it, including setting money aside for taxes, and help you plan for the future.

3. Your attorney

There's no telling what legal issues you could walk into. Let your attorney know what's happening.

Frequently asked questions

Why talk to a tax professional before selling a business?

You need to come up with an idea of what your potential tax liability may or may not look like.

What does a financial adviser do in a business sale?

If you're going to have a large profit, your financial adviser should help you budget out that money and set some aside for taxes, working hand in hand with your tax advisor.

Grant Dougherty, EA, MBAGrant Dougherty is an Enrolled Agent and MBA based in the Houston area. He is federally licensed by the IRS to represent taxpayers across all fifty states. More about Grant