Tax Planning Strategies Every Business Owner Must Know Before Selling a Business

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Last Updated: Aug 24, 2026

Read Time: 3 mins

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One thing people often don’t realize is that for business owners, their estate planning attorney needs to be intimately involved in the succession planning of any type of business. A big aspect of what we do in our practice is focusing on exit planning strategies that are tax-efficient.

Let me give you an example: let’s say a business owner has a closely held business interest, and they’re going to sell it. It doesn’t really matter who they sell it to, but there are two things they need to be thinking about: income tax savings and estate tax savings.

When it comes to income tax savings, most people are already trying to figure that out. But there are two areas that people often overlook. First, state income tax. If you’re a business owner living in a jurisdiction with a state income tax, you can potentially move your business interests to a trust for your benefit that’s domiciled in another state. We love South Dakota because it doesn’t have a state income tax and is recognized as the premier trust jurisdiction in the U.S. By doing this, you can avoid state income tax when you sell the business. Additionally, you get the added bonus of asset protection.

Next, there are charitable planning and giving opportunities that could help reduce your state and federal income taxes. I won’t go into too much detail about that right now, but it’s something worth considering.

Now, the other big piece to think about is this: maybe, as a business owner, you’re currently worth $1 million, $2 million, or $3 million. That’s a lot of money, but it’s not enough to put you in a taxable estate situation. Meaning, if you passed away, you wouldn’t have a taxable estate. However, if you sell that business, now all of a sudden, you’re worth maybe $10 million, $20 million, $30 million, $40 million, or even $50 million. Your financial situation has changed dramatically.

So, the key thing to consider is how you’re going to reduce estate tax. Planning is so much easier to do before you have that liquidity event. Your trust planning needs to be a part of your business succession plan and exit strategy. Don’t miss out on these significant income and estate tax planning opportunities before you sell that business!

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Client Testimonials

    
 
 
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   Angélique Pfab Green 
 
 
 
 Trustindex verifies that the original source of the review is Google. Stuart Green is incredibly knowledgeable and clearly operates at a very high level. His approach to estate planning and wealth strategy is thoughtful, modern, and well beyond the traditional. You can tell he genuinely cares about helping people protect what they’ve built. Truly impressive work and reputation.
  
 
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   Maria Cardenas Anderson 
 
 
 
 Trustindex verifies that the original source of the review is Google. I had an excellent experience working with Stuart Green on my trust and will documents. From start to finish, he was incredibly responsive, patient, and thorough. He took the time to explain everything clearly, ensuring I fully understood each step of the process. Even after the trust was complete, he guided me on what still needed to be done — something I really appreciated. Stuart’s professionalism and kind demeanor made what could have been an overwhelming experience so much easier. I felt informed and supported every step of the way. I would highly recommend him to anyone looking for a knowledgeable and attentive probate lawyer. Thank you, Stuart!
  
 
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   katelyn rennie 
 
 
 
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   Chris Stinson 
 
 
 
 Trustindex verifies that the original source of the review is Google. Stuart Green is an exceptional estate attorney. He handled my father's living will and then his estate after his passing, as well as helping my mother finalize and complete her estate in conjunction with my father's death. Currently, he is handling the living will and estate planning for me and my wife and our family. I highly recommend him and his integrity of work.
  
 
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   Alejandra 
 
 
 
 Trustindex verifies that the original source of the review is Google. My experience with Stuart Green Law was a 10/10. They were professional and efficient, resolving my case quickly. I highly recommend them!
  
 
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   Joseph Marchetti 
 
 
 
 Trustindex verifies that the original source of the review is Google. Great guy - honest businessman.  Has been very helpful for me in providing feedback and input from a law perspective on employment and legal agreements in my personal and professional life.  Would heartily recommend Stuart to others!
  
 
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   Will Desrochers 
 
 
 
 Trustindex verifies that the original source of the review is Google. I have worked with Mr. Green for awhile now and can't recommend him highly enough. He is professional and and timely with his responses to my questions. I really appreciate how he helps me understand the plan for my estate. I look forward to continuing to work with him.
  
 
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   Chuma 
 
 
 
 Trustindex verifies that the original source of the review is Google. I’ve learned a great deal from Stuart on the foundational aspects of estate planning, legacy planning and asset protection. Having had the privilege  to work alongside Stuart, I can also say that he is a top tier counselor and focused on aligning his client’s personal goals with their long term objectives and wishes.
  
 
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   Nick Delsignore 
 
 
 
 Trustindex verifies that the original source of the review is Google. Incredible person to know and be associated with. Stuart provides excellent services, that is undeniable. However you will be hard pressed to find another attorney with a truer moral compass.

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