Tip #33 Minimizing income taxes – short term strategy or long term mistake?

Many business owners and their accountants are absolutely fixated on minimizing taxes by showing no income. But this can be misguided planning for trying to get top dollar when selling the company. Business owners need to realize valuation is usually determined by a multiple of identifiable cash flow and that banks make acquisition loans based on tax returns. Not paying taxes can be a short-term strategy that might not pay off at the end!