What taxes will be owed when I sell my business?

If your business is not incorporated, it must be incorporated before selling it. Suppose the purchaser buys the shares of your corporation, and the business is a Qualifying Small Business Corporation. In that case, each shareholder can have up to a $1,000,000 capital gain and potentially pay as little as $40,000 in personal income taxes on the gain. Proper planning can minimize the income tax liability.