By bifurcating a sale of a C Corporation between the assets owned by the corporation and those owned personally by the shareholder, such as separately for the personal goodwill and any intellectual property created by the shareholder personally which the corporation has been using, when appropriate, the double taxation on a sale of the business by a C Corporation can be reduced substantially. The shareholder can have capital gain personally separate from any gain on the sale of the business assets of the corporation.
If the corporation continues after the sale of the business assets with only the shareholder being the remaining employee, contributions to a DBPP and a Post-Retirement Medical Benefit and Long-Term Care Plan can mitigate the tax burden from the sale of the business assets.
