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What happens if I want to sell my business?

January 30, 2026

Are you thinking of selling your business? Whether you’re retiring, moving, or just ready for something new, here’s what happens when you decide to sell your business.

Selling a business is a multi-step process. Once you make the decision to sell, you’ll need to figure out what your business is worth. This is called a business valuation. Valuation looks at your pre-tax cash flow, assets, customer base, and even your industry. A broker or CPA can help you price your business fairly, but you can use some standard formulas as a starting point on your own.

Next, you’ll need to find a buyer. This could be an employee, a competitor, an investor, or even someone in your own family.

Now, legally, there are two ways to sell: an asset sale or an entity sale. Each has different tax and liability consequences. As a seller, you would usually prefer to sell the actual LLC or corporation, but that rarely happens. Most often, these transactions fall into the asset sale category, so you are transferring assets and rights from your entity to the buyer’s entity.

So, once you have a buyer lined up, a price, and a plan in place, you’ll want some legal documents, such as a clear letter of intent, a solid purchase agreement that protects you, and a smart tax strategy. And don’t skip the due diligence step, which involves going through many details about the business with the buyer—that protects everyone.

You also want to think carefully about how the transition will work so that it will be as smooth as possible for your customers and employees. It’s not always feasible, but with good planning, you can lower or defer capital gains tax, especially with installment sales, asset allocation, and some advanced planning techniques.

Selling your business can be a smart move, but only if it’s done right. Be sure to talk to legal and financial advisors before you start. We know it can be overwhelming to consider the strategy on negotiations, and the numerous legal documents involved in this process. Let us help you navigate your business sale with confidence and clarity. We are here to help.