Sale of a Business Package - Utah 2025

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You must prepare a sales agreement to sell your business officially. This document allows for the purchase of assets or stock of a corporation. An attorney should review it to make sure its accurate and comprehensive. List all inventory in the sale along with names of the seller, buyer, and business.
Steps to take to close your business File a final return and related forms. Take care of your employees. Pay the tax you owe. Report payments to contract workers. Cancel your EIN and close your IRS business account. Keep your records.
In general, business owners can expect the capital gains tax rate from a business sale to range between 0% and 20% of the profit.
Form 4797 is an IRS tax form. Entities use the form report gains from the sale or exchange of business property, including property used to generate rental income and property used for industrial, agricultural, or extractive resources.
When selling your business in California, the proceeds are subject to either ordinary income tax or capital gains tax depending on whether or not youve held ownership for over a year. Generally speaking, long-term capital gains are lowly taxed than ordinary income and short-term ones.
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If you sold business-use property during the year, you had a gain or a loss on the sale. Complete and file Form 4797: Sale of Business Property.
Transferring a business as a going concern. To sell a business as a going concern is when a company owner sells a business to a buyer that can continue operating as usual in its current financial state, using existing resources available to the business, such as equipment and premises.
Follow these steps to calculate the net results of any asset sales and record them ingly in your accounting: Determine the initial value of the assets. Calculate depreciation. Negotiate the sale price. Calculate loss or gain. Record your loss or gain.

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