Forum Posts

Rasel Rasel
Jul 07, 2022
In Interior Design Forum
In a contract for the sale of a business, a reasonable value Job Function Email List can be allocated to a 'covenant not to compete' which Job Function Email List is generally enforceable provided it is reasonable and limited as to time and territory. The buyer may amortize this amount over 15 years even though the actual term of the CNTC is usually much shorter. For this reason, buyers Job Function Email List often prefer a larger amount be allocated Job Function Email List to tangible assets or a consulting agreement with a shorter useful life. In order to be legally binding, it is Job Function Email List recommended that some consideration is allocated to a CNTC. Consulting Agreement Depending Job Function Email List upon the goals of the seller/buyer and the complexity of the business being sold, the seller could be retained as an independent consultant. The consulting agreement should specify the schedule of time (days or hours involved) Job Function Email List, type of training or services provided, the length of the agreement, and compensation. This is a popular structuring method which Job Function Email List can benefit both the buyer and seller. For example, the sales price could be lowered in exchange for a lucrative consulting contract. The buyer benefits as they pay less money up front and have the ability to deduct the payments in Job Function Email List the year made as a business expense. The seller could benefit by receiving Job Function Email List the compensation over a period of several years, possibly reducing the tax impact. There are additional tax related issues to the seller, pertaining to the deductibility of business expenses incurred as a consultant and potential Job Function Email List self employment taxes, and it is therefore recommended that proper tax counsel is obtained. 4. Seller Financing / Installment Sale It is rare for a privately-held business to change hands for an all-cash price.
Seven Irrefutable Facts Job Function Email List content media
0
0
4
 

Rasel Rasel

More actions