sell your internet businessIt may make sense to sell your online business before the end of 2012.


With the expiration of the Bush tax cuts comes a de facto tax increase. You may see your capital gains tax rate jump in 2013 from 15% to 24%.

Throw in an uncertain economy, rising healthcare costs, and growing Internet competition for even the smallest niches, and now may be the perfect time to sell your Internet company, retire, or even start over by building a new business after salting away your gains from your current company.

Where do you find potential buyers?

  • Your competition may be looking to become larger by acquiring your online company.
  • Many downsized white collar service workers with tech skills are hunting for Internet businesses to buy using their 401k and IRA funds.
  • Internet business brokers can help you find a qualified purchaser.
  • You can do your own marketing and advertising online and offline to sell your company.

How do you close the deal?

Like brick-and-mortar companies, there are many ways to structure the sale of an Internet business. Issues to discuss with your Internet business lawyer include…

  1. Will you sell your online company’s assets or your equity?
  2. Do you want a lump sum at closing or multiple payments over time?
  3. Are you willing to sign a non-compete agreement if required by the purchaser?
  4. How will you keep information confidential during and after the sale process?
  5. Are you willing to stick around as a consultant to the new owner for a period of time?

Your Internet lawyer can paper the deal for you while your accountant can work with your Internet attorney to ensure that you get favorable tax treatment in the process.

So what if you don’t want to sell now? Keep plugging away. However, recognize that if the capital gains tax rates go up and the economy doesn’t quickly recover, you may have to work a lot longer just to take home the same amount of money you’d get today by selling your Internet business and paying less taxes.

Author Mike Young, Esq.

Internet Lawyer Mike Young provides contracts and other efficient legal solutions to business owners and C-level executives of privately held companies. To get legal advice from Mike, click here to set up your phone consultation with him.

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