Issues to address before the sale:
Defined-Benefit Plan – to shield pre-tax profits
Personal Goodwill – to avoid double taxation on a C-Corp
Taxes-Deferred – If you are looking to buy a larger childcare center, you can use a Like-Kind Exchange to use your equity on a tax-deferred basis where the capital gains tax is deferred.
Converting “C-Corp” to “S-Corp” can significantly reduce taxes
Best time to convert is when profits are low
If the owner’s net worth is high enough that retirement needs are taken care of, then taxes could be reduced on one’s estate through:
Gifting to family – use valuation discounts, Family Limited Partnership, Grantor Retained Annuity Trusts, …
Charitable Remainder Trusts
Structure can allow lower taxes.