Case Study
Service Business
Equity Sale

Selling a closely held service business—especially through a stock sale—can trigger a substantial capital gains tax, particularly for long-term owners with low basis. Between federal long-term capital gains and state income tax, a significant share of the sale may be lost to taxes. Traditional approaches offer limited flexibility and typically fail to preserve liquidity, leaving sellers with fewer options for wealth management or reinvestment.

The TaxWealth Approach

TaxWealth provides a tax-optimized exit solution tailored for business owners. Instead of forcing reinvestment or immediate tax payment, our strategy restructures the transaction to legally shift tax obligations—allowing sellers to access more of their proceeds upfront, maintain control, and plan their next move with maximum flexibility and compliance.

The Problem

A business owner sold their company for $6,400,000. Under a conventional sale, the total tax liability was $1,956,784, leaving just $4,123,216 in net proceeds. Nearly a third of the value was lost to taxes, limiting liquidity and reducing financial flexibility for future planning.

The Solution

Using TaxWealth’s planning strategy, the owner legally delayed tax payments and received a net distribution of $5,687,260. After reserving funds for future obligations, they retained $5,343,082 in usable capital—resulting in a 29.3% increase in available proceeds compared to a conventional sale.

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Our proven approach has helped business owners, real estate investors, and high-net-worth individuals increase their profits by 20-40% through tailored tax strategies. Don’t leave money on the table—discover your tax-saving potential today!