If you are a small business owner who’s company is primarily internet-based, especially in eCommerce, trying to determine the value of your web business can often be a daunting and very challenging task. A fundamental question that challenges traditional thinking pertains the tangible and intangible value of a website. For pure play web companies, the website is their building and the internet is their real estate. When a traditional company is sold, often times the building and land go with it. Is web real estate and property being valued in the sale of a web business?
Retiring business owners and representative business brokers need to be made aware of a tremendous opportunity to maximize seller earn-out and reduce capital gains liabilities. A relatively new program, called a Structured Sale Annuity, is a product conforming to two IRS Revenue Rulings (82-122 & 75-457) where a business seller can place any portion of their sale proceeds into a fixed annuity under very flexible terms based on the seller’s retirement needs. The individual can really shape this payout to suit their financial and lifestyle obligations; such as monthly payments over 10-30 years, quarterly or annual payments, recurring payments plus a balloon payment on a specified date, etc. All the while the business seller is gaining higher yields and has significantly reduced his tax liabilities by deferring compensation on an annualized basis. This product converts capital gains tax (if all monies were taken by the seller at closing) into ordinary income tax because monies are distributed through a third party to the individual and reported annually.
Recent news coming from Hillary for Presidentï¿½indicates that should Mrs. Clinton take office, she proposes credits and financial relief to California small business owners.ï¿½ï¿½ This plan which is coined “American Health Choices Plan” would cover more than 6 million uninsured Californians, as well as “provide financial incentives for small businesses to purchase health insurance coverage for their employees”.ï¿½ Health insurance premiums have risen nearly 70% in the past years for small business owners seeking to offer such benefits to its employees, pulling money from business profitability.ï¿½