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Tax Benefits in Acquisitions of
Privately Held Corporations |
The Way Companies Are Organized for Tax Purposes
Affects Their Selling Price in an Acquisition
Anyone who forms a company has many choices regarding how their business is organized for tax and legal purposes. The tax code defines two common organizational forms: S corporations and C corporations. Business owners choose between these forms based on the organizational form's tax features, legal requirements, and non-tax attributes.
"Conduit" or "pass-through" entities include S corporations, partnerships, and limited liability companies (LLCs). With conduit entities, there is no tax at the entity level. Instead, all income or loss flows through to shareholders, who report these earnings on their own income tax returns.
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Building Business Value Now for
Successful Exit Later |
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Managing a growing and thriving business can require 60-hour weeks. The day to day events can consume even the best-organized CEOs.
As a result, the establishment of an exit strategy is often postponed. Business owners inherently believe there is plenty of time later to firm up an exit strategy.
The problem with this thinking is that without a strategy, improper decisions can be made that greatly reduce value or eliminate exit strategy options.
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Certified Exit Planning Advisors (CEPA) and Acquisition Specialists
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| Jack Lyons |
William Quish |
| President |
Senior Managing Director |
| Lyons Solutions, LLC |
Lyons Solutions, LLC |
| 4 Saint Mary's Lane |
9 Shaw Drive |
| Norwalk, CT 06851 |
Simsbury, CT 06070 |
| (203) 642-4141 |
(860) 658-1845 |
| jlyons@lyonssolutions.com |
bquish@lyonssolutions.com | |
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Jack Lyons and Bill Quish are part of an exclusive group of business advisors worldwide who have received the Certified Exit Planning Advisor designation. They are uniquely positioned to guide you through an Exit Planning process that is designed to accomplish your personal, business, financial, charitable giving, legacy and retirement goals. A customized Exit Plan can provide a significant return on investment when you sell your business.
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| About This Newsletter |
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Exit Planning & Business Improvement
Lyons Solutions is pleased to bring you this monthly newsletter devoted to topics related to the important fields of Exit Planning and Business Improvement. This and future issues will contain information and articles written by Lyons Solutions, other Certified Exit Planning Advisors and respected Business Consultants. Please feel free to forward the Newsletter to your clients and associates.
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