If you're a business owner who is contemplating moving a considerable distance with your family, it's time to give some serious thought to whether you wish to continue operating your business. While it's true that this entity may be providing you and your loved one with a steady income, now might be the time to think about listing the business for sale. Selling a business can be a time-consuming process, so depending on the timeline for your move, you might want to get started now. Here are three reasons to sell your business before a long-distance move.
It Will Save You Some Headaches
You may not be keen on the idea of continuing to own the business once you've moved. While you'll obviously need competent staff in place to operate the business, it's reasonable to expect that owning the business from afar will yield its share of headaches. For example, when you need to tend to the affairs of the business, travel may be lengthy. If you're moving across multiple time zones, something as simple as coordinating a time to speak to those who work for you during regular business hours can be arduous. You may find that selling the business is in your best interest at this time.
It Prevents Tax Issues
If you're moving out of the country, you may prefer to sell the business now to avoid tax issues. For example, if you'll be earning income in your new country but also in the United States where your business is set up, you'll need to file taxes in both nations. The nature of these tax returns can be complicated, and while a good accountant will be an asset to you during this tricky time, you may feel as though it's simpler to liquidate the business now and just focus on earning a living, and paying taxes, in your new country.
The Business May Perform Poorly
Depending on your current level of involvement with the day-to-day affairs of the business, it's possible that the business may suffer without you there. While you may perform some of your former tasks remotely, the reality is that things could change without your physical presence at the business. Over time, you may notice this decline and be eager to sell, but end up making less money because of the business's struggles. Selling now helps you to avoid taking this potential future loss.