#small-business
3 articles
Small Businesses Sell for 2.7x Cash Flow. A 20% DCF Says 5.3x. The Owner's Salary Explains the Gap
BizBuySell's Q2 2026 report puts the average small-business sale at 2.7x cash flow. We ran the median $155,921 cash flow through a DCF: at a 20% discount rate it's worth $821K, until you pay the new owner a salary.
$34,000 Into the QBI Phase-In Range Already Costs You $3,400 of Your 20% Deduction
We ran $200,000 of qualified business income through the calculator at $428,600 taxable income (MFJ) — $34,000 into the 2025 phase-in range. The W-2 wage limitation already cuts a non-SSTB business's deduction from $40,000 to $36,600.
A $150K Freelance Consultant Saves Real Money Electing S-Corp Status at a $70K Salary
We ran a $150,000 net-income freelance consultant through the calculator with a $70,000 reasonable salary — the S-Corp election clears even a $3,000/year compliance cost, because only the salary gets hit with payroll tax.