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makingsigns
Feb 28, 2023 12:40 PM UTC
Question

Do we put the proceeds from the sale of the business (Subchapter S) in our business account or personal account?

We are selling the business and don't know where to put the proceeds...the business account and then close that account or our personal?  Thanks!

4 replies

Rainflurry
Rainflurry
Feb 28, 2023 2:18 PM UTC

@makingsigns 

 

Was this an asset sale or a stock sale?  If it was an asset sale, it's best to deposit the proceeds into the business account since the corporation sold the assets, not you personally.  If it was a stock sale, I don't think it makes much difference.

makingsignsAuthor
Feb 28, 2023 2:46 PM UTC

It is an asset sale. So deposit in the corporation account?  I just don’t want to be taxed twice.  Thanks!

Rainflurry
Rainflurry
Feb 28, 2023 3:32 PM UTC

@makingsigns 

 

Yes, into the business account.  There is no correlation between where the deposit is made and the tax ramifications of the sale but it is the cleanest and easiest to deposit it into the business account.

makingsignsAuthor
Feb 28, 2023 6:21 PM UTC

Ok, thank you so much! 

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