Article Date:
December 2016


Word Count:
1679

 

 

Buying a Business: Should You Buy Ownership Interest or Assets?


You can structure the purchase of a business in two basic ways.

 

If the target business is operated as a C or an S corporation, a partnership, or an LLC that is treated as a partnership for tax purposes, you have two options:

 

1.

Buying the ownership interest of the seller.

2.

Buy the entity’s assets.

 

If the target business is a sole proprietorship or a single-member (one-owner) LLC that is treated as a sole proprietorship for tax purposes, you have only one option—an asset purchase.

 

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