What To Do With the Money From Selling Your Business

Selling a business is a monumental decision. After years of giving your blood, sweat, and tears, you’ve finally decided to cash in on your success. What should you do with the money you’ve earned from selling your business? Consider the most strategic and emotionally satisfying ways to put those funds to use.

Reinvest Funds To Defer Taxes

While you may have earned a good chunk of change from selling your business, Uncle Sam will take his share. If you’ve had your business for a long time, the sale could be taxed by as much as 20 percent under long-term capital gains taxes. Luckily, you can avoid this common tax pitfall when selling a private practice with an Opportunity Zone reinvestment.

Until the end of 2026, the government allows business sellers to reinvest the funds they earned from the sale into an Opportunity Zone within 180 days of profit accumulation and defer the capital gains tax. This investment goes to businesses that need it, tax-free. You can even get a sizable return!

Create a Retirement Plan

If you’re selling because you want to retire, you shouldn’t wait to assemble a formal retirement plan. Selling a business might give you a significant financial boost, but you should ensure that money sustains you for the rest of your life.

Create a formal financial plan for retirement. To start, consult a financial advisor who can analyze your current financial status, investments, and needs. They can help you devise a well-rounded plan to provide income while balancing risk and reward. A comprehensive plan should include the following considerations:

  • Risk tolerance
  • Investment horizon
  • Income requirements
  • Tax implications

With a strategic retirement plan in place, you can feel more confident in the financial decisions you make post-sale, whether that’s investing in assets, spending on leisure, or leaving a legacy.

Donate to Charity

Another good thing to do with the money from selling your business is donate a sizable portion to charitable causes. Not only will you feel good about helping others, but you could also bring in tax benefits.

The IRS allows individuals to claim a charitable deduction for donations to qualified organizations. Depending on your tax bracket, donating to charity can significantly impact your overall income tax obligations. Furthermore, establishing a charitable trust or a donor-advised fund can grant you more control over your donations while providing asset protection and tax benefits.

Consult a financial advisor or charitable organizations to maximize your philanthropic impact and tax benefits.


Deciding what to do with the influx of funds you receive from selling your business can be exciting yet overwhelming. Whether you’re investing in Opportunity Zones, creating a financial plan for retirement, or donating to charity, you have plenty of strategies to consider!

Hi! I'm Alexandra

I am an entrepreneur, author, and mom of 3 from Memphis, Tennessee. I fill my days pursuing the dream of being my own boss as a full time influencer and sensory marketing specialist while spending my evenings playing superheros, helping with homework, making dinner, and tucking in my littles.

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