The Funnel, Ep. 14: How Much Will You Pay In Taxes?
Taxes are not just an accounting issue—they are a transaction issue.
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Show Notes
In many straightforward transactions—such as the sale of a pass-through entity like an LLC or S-corp—proceeds are typically taxed as capital gains at the federal level. Depending on where you live, state capital gains taxes may also apply.
For founders in high-tax states, state taxes alone can materially reduce proceeds. Combined with federal capital gains, this may result in the highest tax rate you’ve ever paid on a single event.
This is the baseline—but it is not the whole story.