Why Sell: Corporations
What could you do with more capital? Open a new division? Invest in new opportunities? Give your office a facelift? When you sell your interest, you’ll get a lump-sum payment that allows you to pursue your business goals and objectives.
Selling has other benefits for businesses as well.
Reinvesting in the Business
Discover how Springbok and Clayton worked together to sell his mineral rights and use the lump-sum payment to achieve his business goals.
Take Advantage of Tax Benefits
With royalty payments, you have to report and pay income taxes on them every year. By selling, you’ll simplify your tax returns because you’ll no longer have that yearly burden, plus you can benefit from long-term capital gains tax rates.
Reduce Your Financial Risk
With monthly royalty checks:
- Your check amount is at the mercy of the unpredictable market price for oil and gas and the production capacity of the well—neither of which you can control.
- Mechanical or operational problems with production equipment can affect the amount of oil and gas that can be produced.
The last thing you need as a business is income that’s unpredictable and can range wildly in value. With a lump-sum payment, you have control of the money and can spend or reinvest in a way that makes sense for your business. And because we’re well-funded, we can close quickly and get your money to you as soon as possible.
Simplify Paperwork and Finances
By selling, you no longer have to keep up with all of the paperwork, such as depletion schedules, division order files and tax records.
So, What’s the Downside?
When you sell your royalties, you won’t receive monthly checks anymore, but you will have a larger, one-time payment. If this decision seems too daunting for your company right now, you can always sell a portion of your mineral interest. This will help reduce your financial risk and provide you a lump-sum payment, but you’ll still have some monthly royalty checks.