Do I pay tax on selling my business?
The short answer on this is it depends! Okay, so not so short. If you sell your business and you have lost money and have not full depreciated the acquisition or startup costs, you may actually have a loss and you end up with a tax deduction. If you sell for a profit, you generally will be paying tax on the gain (How much you sold the business for minus how much you spent to purchase or start it). This of course is a simplified picture and you need to take things into consideration such as profits and losses, investments, depreciation and amortization.
You may be able to avoid paying a capital gain by doing a 1031 exchange depending your situation which means buying a business or property to replace the existing owned business or property. Each and every transaction is very different and you should consult with your CPA or tax attorney to fully understand what a sale may look like from a tax perspective and what all your options may be.