If you are a business owner, you probably make tough choices about your business every day. There may be one decision, however, that you haven’t taken the time to think about; transferring your business to a new owner.

Once you consider selling your business, you have to take several details into account. Some of those details may be estate and gift tax rules as well as current interest rates.

Here are some options you need to think about as a business owner:

Gifting: Your plan to sell your business may not be a sale at all. You may wish to “gift” your business or set up a trust for your family. The lifetime exclusion for estate, gift and generation skipping transfer taxes for 2011 and 2012 is $5 million. This is the amount you can gift to anyone, and it’s tax-free.

Selling: You may be thinking that the sale of your business must be conducted with someone who is not in your family. This isn’t so. You can always sell your business to any relative you choose.

Employee Stock Ownership: You may also opt for an Employee Stock Ownership Plan. This is a plan that benefits your employees by allowing them to purchase your company’s stock while giving your business a huge tax break.

There are tax, legal and financial details to be considered when gifting or selling your business, no matter if the transfer is to family or to others. Talk to a financial professional about the type of transfer that will benefit you and your family the most.

Daniel Stoica Accounting Professional