The Moment
You sold the business you built for $1,000,000 or more. This is the culmination of years — maybe decades — of work. The money represents compressed value: revenue, relationships, intellectual property, and your labor, all converted to a single sum.
At $1M+, every financial decision is consequential. The difference between a well-structured and poorly-structured sale can be $200,000-$500,000 in taxes. The difference between a well-deployed and poorly-deployed nest egg can be $500,000+ in lifetime wealth. Get professional help.
The 6-Month Framework
Months 1-2 — Secure and assemble. Park proceeds across multiple HYSA/Treasury accounts ($250,000 per bank for FDIC). Hire: - CPA with business sale experience (QSBS, installment sales, state tax optimization) - Fee-only fiduciary advisor (comprehensive wealth planning, not product sales) - Estate attorney (trusts, asset protection, succession planning) - Insurance review (umbrella $2-5M, life insurance update, disability)
Months 2-3 — Tax optimization. - QSBS exclusion: If C-Corp held 5+ years, up to $10M (or 10x cost basis) in gains may be completely tax-free under Section 1202 - Installment sale: Spreading payments over years reduces annual tax bracket impact - State residency: Some states have no income tax (moving before sale can save $50,000-$130,000) - Opportunity Zone investment: Defer and reduce capital gains by investing in qualified OZ funds - Charitable strategies: Donating appreciated shares pre-sale eliminates gains tax on the donated portion
Months 3-4 — Investment architecture. Diversified portfolio: 60-70% equities (global index), 15-20% bonds, 10-15% alternatives/cash. Deploy over 3-6 months.
Months 4-6 — Estate and lifestyle planning. Revocable living trust, irrevocable trusts for estate tax planning (if net worth exceeds $13.6M), umbrella insurance, health insurance (ACA marketplace if no employer coverage), and the difficult but important identity transition from business owner to investor.
Run Your Numbers
Enter your sale proceeds.
$1M+ Windfall Allocator
Life-changing windfall. The bigger question is what this money is FOR. Talk to a fiduciary.
Educational illustration — not financial advice. Math: @/lib/finance/allocation.ts. Allocation order follows the canonical waterfall: high-interest debt → emergency reserves → captured match → tax-advantaged room → taxable invest.
What to explore next
- →Do I qualify for the QSBS exclusion?
- →Should I do an installment sale or take a lump sum?
- →How do I invest $1M+ from a business sale?
Frequently Asked Questions
What is QSBS and do I qualify?
Qualified Small Business Stock (Section 1202) allows exclusion of up to $10 million in capital gains if: the company was a C-Corporation, the stock was held for 5+ years, and the company had gross assets under $50 million at the time of stock issuance. If you qualify, the tax savings can be $1-2 million+. Many founders restructure to C-Corp years before a sale specifically for this exclusion.
Should I reinvest in another business?
Wait 12 months minimum. Post-exit euphoria and identity crisis drive premature business starts. If you do start again, allocate a defined amount (10-20% of proceeds) and protect the rest in diversified investments. Your financial security should not depend on the success of the next venture.