Hi all! I`m new here so bear with me.
I own an in-home personal training business in rural Ohio. I have only owned this business since May 08 but am planning to move out of state in fall 09 and would like to sell at that time. I`ve picked up a new client almost every month since I started so the business is growing rapidly. I think I could get a personal trainer or newly graduated student in the area to buy the business (basically a website and client list) from me.
Right now I`m trying to figure out what the best steps to take are leading up to putting the business up for sale around August.
It is currently a sole proprietorship. Do I need to turn it into an LLC to sell?
I`ve read that with my type of business (no inventory, no building, no equipment) that I should multiply annual profits by 1-1.5 to determine a sell price? And additionally, how do I determine annual profit if income has increased each month?
Should I file estimated taxes? (this ties into question 1)
Should I continue adding clients so that the monthly income is as high as possible by the sell date?
Is there anything else I should do?
Thank you so much to anyone who can answer my questions. I`ve been getting a headache reading the irs website on taxes and articles on valuation. I could use some help from someone more experienced.