Tight Timeline (90 Days): Prioritizing High-Impact Tax Decisions

With 90 days to closing, focus on the decisions with the largest tax impact: entity type, financing structure, and purchase price allocation. This is still a workable planning window but requires immediate action on forming entities and conducting tax due diligence.

Entity formation is still on the table. You have time to form the right acquisition entity (LLC, S corp, C corp) and obtain an EIN before closing. The entity type determines how income flows to your personal return and whether you face double taxation on eventual sale.

Financing structure can be optimized. How you finance the acquisition (seller financing, bank loan, SBA loan, investor equity) has tax consequences. Interest on acquisition debt is generally deductible under Section 163, but limitations apply depending on entity type and business income levels.

Tax due diligence is well-timed. Three months allows a CPA to review the target's tax returns, assess state nexus exposure, and identify any payroll or sales tax issues before they become your liability.

Purchase price allocation strategy. With 90 days, a CPA can model different Form 8594 allocation scenarios showing how shifting dollars between asset classes affects your depreciation and amortization over the next 5 to 15 years.

The tradeoff: This timeline is ideal for planning but tight for implementation if multiple structural changes are needed. Prioritize the decisions with the largest dollar impact first.