Tax Implications A Major Determinant

Tax consequences play a significant role in deciding between an asset sale and share sale. Asset sales often result in higher taxes for the seller due to the potential recapture of depreciation on sold assets. In contrast, share sales might be treated as capital gains, leading to potentially lower tax rates for the seller. Women founders should consult with a tax advisor to understand which exit strategy offers the most favorable tax treatment based on their business’s specifics and personal financial situation.

Tax consequences play a significant role in deciding between an asset sale and share sale. Asset sales often result in higher taxes for the seller due to the potential recapture of depreciation on sold assets. In contrast, share sales might be treated as capital gains, leading to potentially lower tax rates for the seller. Women founders should consult with a tax advisor to understand which exit strategy offers the most favorable tax treatment based on their business’s specifics and personal financial situation.

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