After experiencing a downturn in 2023, merger and acquisition activity in several sectors is rebounding in 2024. If you’re buying a business, you want the best results possible after taxes. You can potentially structure the purchase in two ways:
Buy the assets of the business, or
Buy the seller’s entity ownership interest if the target business is operated as a corporation, partnership or LLC.
In this article, we’re going to focus on buying assets.
EMPOWERING YOUR BUSINESS THROUGH STRATEGIC FINANCIAL PLANNING
Navigating the complexities of business ownership requires a keen understanding of financial planning. A comprehensive financial plan is more than just a set of documents; it’s a roadmap that guides your business through the ever-changing landscape of commerce, helping to steer day-to-day decisions and long-term strategies.
GROWING YOUR BUSINESS WITH A NEW PARTNER: HERE ARE SOME TAX CONSIDERATIONS
There are several financial and legal implications when adding a new partner to a partnership. Here’s an example to illustrate: You and your partners are planning to admit a new partner. The new partner will acquire a one-third interest in the partnership by making a cash contribution to the business. Assume that your basis in your partnership interests is sufficient so that the decrease in your portions of the partnership’s liabilities because of the new partner’s entry won’t reduce your basis to zero.
Madelyn graduated last year from the University of California, Irvine with a major in both Business Economics and in Dance. In her free time, she continues to take dance classes and teach young students. Madelyn is very happy to be a new part of Hamilton Tharp team!