The Sale of a Warehouse Business with a C-Corp to S-Corp Conversion

The sellers owned a warehouse business and had recently converted from a C-Corp to an S-Corp. At the time of the sale, they still had more than 4 years before the 5-year look back period would be complete.

• They had received a very attractive offer to buy their business for $25MM
• The sellers were faced with selling now and paying the C Corp taxes or waiting for a future buyer
• By Structuring the payments to begin after the look back period had passed, the clients were able to completely eliminate the 20% C Corp tax for an immediate savings of $5MM in tax.

The benefit of using a Structured Installment Sale Strategy

• $5MM in initial tax savings alone