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ARTICLE · 21 DECEMBER 2022

Let's Talk About Tax

Arnold & Porter
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Do we have to? Yes, we have to! Now, strap in and pay attention because this stuff is important. It's all fine and good for potential buyers to tell you what they think your practice is worth...

United StatesTax
Allison Shuren
Allison Shuren
J. Matthew Owens
J. Matthew Owens
Christine Klimanskis
Christine Klimanskis
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Do we have to? Yes, we have to! Now, strap in and pay attention because this stuff is important.

It's all fine and good for potential buyers to tell you what they think your practice is worth, but what does that translate to in after-tax dollars? Do you even know how the proceeds from a sale transaction would be taxed? If not, that needs to be one of the first questions you ask.

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It's all fine and good for potential buyers to tell you what they think your practice is worth, but what does that translate to in after-tax dollars?
Source: Adobe Stock.

How a sale transaction is structured is one of the most important decisions in the whole process because it can have material economic ramifications. First and foremost, your advisers will need to know if your practice is structured as a C corporation, an S corporation or a partnership. As you'll see in the coming blog installments, the answer to that question will drive the bulk of the tax analysis. In fact, that

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