If you know from the start that you will eventually sell your membership site, you can structure it to make this a simple and profitable process for you.
Tax relief
Tax laws vary greatly by country, so it is advisable to check tax relief legislation locally when you start your business. The length of time you own your membership site, as well as the type of ownership, and the type of products and services you offer can impact whether you are entitled to tax relief on the profit you make from your site.
Co-owners
If you are the sole owner of your membership site, selling it will be a relatively simple matter. If however you have co-owners, no matter how small their share, you need to give some thought to them when you put together your exit strategy. In this case your exit plan will have a shareholder strategy detailing the following points:
- Agreement on how each co-owner’s share will be valued on sale.
- Agreement as to whether any co-owner must offer the other co-owners the option to buy their share before they sell it to a third party.
- Agreement on what will happen to smaller shareowners if the majority owner decides to sell.
Having a business structure in place that makes your site ready to sell will ensure a smooth and speedy sale. If you spend time trying to sort out tax affairs and obtain co-owner agreement at the time of the sale, you may well deter your potential buyers from completing the transaction.