You Built the Business. Plan What You Keep.
The best exit is planned years before the closing table.
For owners, the biggest tax bills come at two moments: the years you earn, and the day you sell. Both are easier to shape than most owners realize.
30 minutes. Free. No tax return needed.
Four things every founder and business owner should weigh
The team at WealthQuant Advisors looks at these together, because each one changes the others.
Entity structure
How your business is set up, whether as an LLC, S corporation, or C corporation, affects how profits are taxed, how you pay yourself, and whether you may qualify for the QBI deduction. It also shapes your options at exit.
Owner retirement plans
A defined benefit or cash balance plan on top of a 401(k) can let a profitable owner deduct far more than a 401(k) alone allows. It fits best with strong, steady cash flow, and your exact number comes from an actuarial feasibility study.
Deal structure at exit
An asset sale and a stock sale can produce very different tax results for you and for the buyer. Installment timing, trusts, and charitable vehicles all work harder when they’re in place before a term sheet arrives.
QSBS and timing
If you hold C-corporation stock, Qualified Small Business Stock can exclude a large share of gain from federal tax, but only if the shares qualify and the holding period is met. California doesn’t follow the federal exclusion.
Does your buy-sell agreement still do what you think it does?
In 2024, the Supreme Court ruled in Connelly v. United States that life insurance a company owns to fund a share buyout can raise the company’s value for federal estate tax, even when the proceeds are earmarked for the buyout. For co-owned businesses, that can mean an unexpected estate tax bill. A Connelly review looks at how your buy-sell agreement is funded and valued, and whether a different structure would work better, with your attorney and CPA.
Strategies that fit a founder’s or owner’s plan
Your customized tax plan draws on these strategies, depending on where you are in the life of your business.
Pre-sale tax design, entity and deal structure, QSBS eligibility, installment timing
Entity and QBI planning, defined benefit and cash balance plans, owner compensation
A company 401(k) with a fiduciary advisor, and deferred compensation for key people
Gifting to family or trusts well before a sale, including QSBS stacking
Charitable trusts and donor-advised funds funded with appreciated business interests before a sale
A needs-based review of key-person, buy-sell, and liability coverage, including a Connelly review of how your buy-sell agreement is funded
We build the plan with your CPA and attorney, on a timeline that protects every deadline.
Common questions from founders and business owners
How early should I start planning my exit?
Ideally two to three years or more before a sale. Many of the best strategies, including QSBS planning, gifting to trusts, and entity changes, need time to season and can’t be done at the last minute.
Does it matter whether I sell assets or stock?
A great deal. The structure affects your tax rate, your QSBS eligibility, and the buyer’s position. It’s a negotiating point best planned before you’re at the table.
Could my shares qualify for QSBS?
Possibly. For stock issued after July 4, 2025, qualifying gain can be 50% excluded after three years, 75% after four, and 100% after five, up to a federal cap of $15 million, and the company must meet size limits. Older stock generally keeps the earlier five-year rules. California doesn’t follow the federal exclusion, so state tax still applies.
Can a defined benefit plan work if I have employees?
Often, yes. A cash balance plan paired with a safe harbor 401(k) is designed so owners can fund the large majority of the benefit while employees receive a controlled, testing-compliant one.
What do I do with the money after the sale?
That’s the part many owners haven’t planned. We build the income, investment, and estate plan for the proceeds so a one-time event funds the rest of your life.
Educational only. Not tax, legal, or investment advice. Strategies depend on your situation.
See what your business is worth after tax
A free 30-minute Tax X-Ray. We’ll look at your business, your timeline, and the moves worth considering. No tax return needed.