You can structure the sale of your business in several different ways. Your most likely selling goals are:
No (or very little) exposure to business-related liabilities after the sale
Getting paid in full (We will address seller-financing-related tax issues in a later article.)
If you operate your business as a C or S corporation, as a partnership, or as an LLC that’s treated as a partnership for tax purposes, you have two options:
Sell your ownership interest or
Sell the assets of the business.
Read this article to understand the federal income tax implications of the two options.
As explained immediately below, you have only one option—an asset sale—if you ... Log in to view full article.