We are a GA based small food manufacturing company of 30 years.
We have a buyer, who is offering $1 million for Business Good Will, Intellectual property
, accounts payable, accounts receivables and inventories on hand.
We may also be financing $150,000 at 6% interest
, with a balloon payment at the end of 5 years- This is part of the 1 million price ( $850,000/- at closing and $150,000, we finance)
The buyer will be leasing the building and plant equipment for 2 years @60,000/ year, 3 rd year optional. We personally own these assets
I have following questions:
1) What is the best way to structure this deal to minimize our taxes
2) Would this be considered long term capital
3) Should we form LLC
, which would own the building and the plant equipment?
4) Any other suggestions are welcome.