SEllING YOur BuSINESS PArT II corporation and become responsible
et Clean on What Matters
l
e
e
G
w
If you own a sole proprietorship
for such liabilities.
Continued from page 18
h
a
or partnership, hopefully after the Upon the sale of shares, typically
two lives towards the end of our
last issue you know the path to the vendor resigns as director of the
careers. We may feel our work has
o
s
e S
selling your business and focusing corporation and the registered and
become incongruent to our values
on the many RVing expeditions in records office changes. Any change
or passions; we may ‘check’ part of
B
y R
your future. Part II of selling your in directors or registered and records
ourselves in our workplace parking
business is geared toward selling a office must be registered with the
lot, not fully showing up to our role—
corporation. corporate registry.
yet secretly yearning to bring our
A corporation is a separate legal Asset Sale: Selling the assets
whole selves to our work. We may
entity owned by its shareholders. does not cease your ownership
mark time during the day and feel
There are two primary mechanisms in the corporation; whoever owns
we begin life in the evenings and
available to sell a corporation: an the shares owns the Corporation.
weekends. The result is that we may
asset sale and a share sale. However, by selling all or substantially
live on the edge of both lives, often
with insufficient energy for either
Share Sale: A share sale is the sale
all of the assets of the corporation
and certainly without satisfaction
of all of your shares in the corporation
the corporation can become a shell
and growth.
to another party. Whoever buys the
company that can be wound up or
shares becomes responsible for
kept in good standing to be used
If we are able to recognize
all of the corporation’s debts and
as a holding company down the
dissatisfaction in our work lives
obligations. If the corporation has
road. As the vendor, you would still
and make adjustments to be more
lots of debts or is in breach of its
be responsible for the debts and
aligned to our true nature, lucky us.
obligations (e.g. is in arrears in its
obligations of the corporation unless
If not, the transition from primary
taxes, rent, etc.) a purchaser may
the purchaser agrees to take them
career to what comes next can
not want to buy the shares of the
over.
be the time a correction may take
The purchaser of assets will likely be
place to lead us back to whom
0
0
9
BAJA
required to pay P.S.T. on the personal
we once were… a more authentic
property being purchased. This often
self. The core of clear vision in the
b
e
r 2
becomes a factor when negotiating
second half of life is to get in-step
m
AMIGOS
the purchase price and in allocating
with our talents, purpose and
values. Through reading, coaching,
e
p
t
e
the purchase price between the
RV
sharing with one’s spouse, revisiting
CARAVAN TOURS
personal property (i.e. equipment)
MEXICO CAMPING SINCE 1985 and the intangible property (i.e.
times in life when hobbies and
s
t / S
November thru March
goodwill) being purchased. Further,
involvements brought joy and
u
g
u
• Small Groups -8 RV’s Max
property transfer tax will likely be
meaning—can be a great starting
• RV Parks, Mexican Style
• Mexican Culture & History
payable by the purchaser on any real
place.
• Flora & Fauna
estate being sold.
Nigel Brown is principal of Life
• Whale Watching (In Season)
o
m | A
• Shuttle Van Excursions It’s important to consult with your
Planning Matters – he coaches
• Dry Camping
• Beautiful Beaches
accountant as a share purchase and
individuals and corporate groups
• Missions & Cave Paintings
asset purchase have different tax
on how workers can transition
b
i
r
d
s
.
c
• Shopping & Restaurants
implications.
productively and happily, from work
• Kayaking, Hiking & Fishing to part-time work or, consulting
• Access to Rental RVs
s
n
o
w
When selling a corporation it can be
to retirement. He is a regular
.
r
v by way of asset or share sale and
contributor to this magazine.
w
tax planning is recommended. Once
w
w
you’ve done all your planning, you’re
T: 250-860-5408
free to enjoy your time on the road.
www.lifeplanningmatters.com ∆
If you have any questions, please
contact Rose Shawlee at Benson
Salloum Watts LLP at
250-491-0206 or
rshawlee@bensonsalloumwatts.com
CALL US AT
1-866-999-BAJA (2252)
∆
info@bajaamigos.net •
www.BajaAmigos.net
28 Virtual Tours online at:
www.rvsnowbirds.com
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