Retiring from business ownership
30 October 2020
Retiring from business ownership – where to start?
When you start considering retirement working out what to do with the business you've successfully built up over the years can be complicated as there are many moving parts and other people involved.
There are some things you can do now that will put you and your business in good shape for when the time comes, even if your retirement is a good few years away.
Make sure your financial accounts are up to date
Paying expenses on time and collecting outstanding debts will give you a clear picture of your businesses cashflow and profitability.
Get your business valued
It may be some time since you last had your business valued and knowing how much it is worth will be important.
Consider tax implications
Speak with your accountant about how tax could impact your plan for leaving your business to retire. If you're over 55 and have owned your business for more than 15 years you may be able to claim some Capital Gains Tax concessions.
Speak with a legal specialist
Your legal specialist can help you understand what the requirements are for selling or closing your business and what documentation needs to be prepared. They can also guide you on other matters such as business licences, intellectual property and employment contracts.
Decide what you want
Do you want to take a step back but still be involved? Do you want to sell your company to other business partners or a third party? Are there children to take over what you have built over the years? Knowing what you want or what is possible will help you make your plan for closing your business, selling it or passing it on to someone you know and trust.
It's never too early to get professional advice on your options for retiring from your business. Skylight Financial Solutions, built by BUSSQ, can provide effective and valuable direction and work with you to develop a plan to make your transition from work to retirement as smooth as possible.
This information is general advice only and does not take into account or consider your personal objectives, financial situation or needs. Before acting consider the appropriateness of the information to your needs or seek independent advice from a properly qualified professional. Prepared by BUSS (Queensland) Pty Ltd (ABN 15 065 081 281, AFSL 237860) as Trustee for BUSSQ (BUSSQ Fund, ABN 85 571 332 201). BUSSQ owns Skylight Financial Solutions Pty Ltd (ABN 46 076 835 848, AFSL 450139), the company that provides financial advice to our members.