In fact, it is best to think this through at an early stage in businesses development so that the correct structures can be put in place early.
A problem many people come across when disposing of businesses is Capital Gains Tax on the proceedings. This can be especially onerous if the company also owns the property it is operating from. CGT will be payable on the property sale too if it is over the threshhold.
This can result in a “double hit” on the proceeds of sale.
Limited Liability Partnerships are very useful when transferring businesses to new owners. This is partly because transferring assets into or out of an LLP is not regarded as a taxable transfer for CGT purposes.
They are also very useful when planning for how to minimise income tax.
All in all, when you are thinking of extracting cash from a business, careful tax planning will pay dividends.