Wiley Financial Services

  After performing a business valuation, the next step is considering your tax bill. It is important to look at the task aspects to gain more skillfully. Paying fewer taxes means you will sell your business at a profit. Note that you will also be taxed from the profits after selling your business. Depending on the type of transaction, you will either pay capital gains or ordinary income tax. When you sell your business assets, you will pay capital gains tax. However, you must pay ordinary income tax for consulting agreements such as   business valuation . Taxes According to Business Valuation Consider negotiating the value of tangible and intangible assets when selling your business. Intangible assets such as goodwill form part of your business valuation. The values you allocate to these assets will determine the income or capi...

  When performing asset appraisal for your business, consider intangible assets. Intangible assets include copyrights, equities, securities, contracts, goodwill, franchises, and trademarks. They are different from the physical assets such as land, which provide value, privileges and rights to the proprietor. Intangible assets lack intrinsic value and physical existence. More often, intangible assets provide long-term growth to your business. If you want to start asset appraisal   for your intangible assets, consider limited life and indefinite useful life assets. Indefinite intangible assets provide long-time benefits to your business despite any catastrophe. They generate income at all times. These assets include brand recognition, goodwill, and business trademarks. On the other hand, limited-life intangible assets provide cash flow for a small period. A common example of a limited intangible asset is a patent. Patents have a specified agree...