Selling business when operating as PTY LTD

Discussion in 'Business Accounting, Tax & Legal' started by hashkent, 31st Aug, 2009.

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  1. hashkent

    hashkent New Member

    Joined:
    1st Jul, 2015
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    Location:
    QLD
    Just a quick question I guess before I chat with my accountant soon.

    If you wish to sell your business which is operating under a PTY LTD structure with sole director and share holder, what's the most tax effective way to pull that money out if you have no desire to continue to carry on a business?

    Obviously the PTY LTD entity would not be sold just the "business assets" to the new owner but I assume I'd need to somehow pull the sale amount out without being taxed twice?

    Is the best way to issue a dividend before the EOFY for 100% of the sale amount (less costs), and use a dividend imputation credit so I get a credit for the tax paid for by the company when I transfer the final dividend to myself? Or is there a better way to do this?

    I'm looking to sell my business in the next 18-24 months, should I look at a different business structure now or is it too late?

    Obviously professional advise should be sort but what things should I think about and talk to my accountant about?

    I would estimate the final sale amount before costs would be between $175k - $200k so its not a huge amount for the amount of time and effort I put in over the last 5 years... :(