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.
Read this article to understand the federal income tax implications of ... Log in to view full article.