Hi all. I'd appreciate some knowledgeable responses here! I am getting ready to buy a business. The seller's asking price is 600k, he wants 300k down and he's willing to finance the other 300k for 7yrs with no interest (about 43k/yr). The seller is using a business broker who's commission is 10%. So am I right in saying that when we close on the business, he will receive 300k...and have to pay 60k in commission, and have to set aside about 90k in capital gains (15% of 600k)....leaving him with only 150k (assuming no write offs)...and 43k a year for 7 years. Instead of him financing, I want to draw up a contract to pay him as a consultant for 7 years. That way, the sale price, commission, and taxes for him are all dramatically lower. Am I right to say that we could arrange it such that, using the same amounts as above....the sale price is now 300k...and he pays 30k commission, and 45k cap gains, leaving him with 225k. He's contracted as a consultant and gets a 1099, on 43k a year he will pay 15% soc/med tax, and income tax of 15% (more tax on the back end than he pays in the first situation, but this way he gets much more money up front). Am I right in saying the second situation is much more advantageous for him (and also me)??? Thank you in advance for any help.