Thinking about buying a business?
Then one of the most important decisions you’ll have to make is whether to purchase the assets of the business or the ownership interest in the business.
And remember, either way there are important legal and tax issues to consider.
If you are planning on buying a C or S corporation, a partnership, or an LLC (that’s treated as a partnership for tax purposes), I urge you to read my new article titled Tax Tips: Buying a Business: Should You Buy Ownership Interest or Assets?
Three ways our fact-filled article can help you:
- We’ll explain what you (the buyer) should be looking for. For starters you’ll require an ample cash flow, a low exposure to the unknown or undisclosed liabilities, and favorable tax treatment. That’s why you should seriously consider purchasing the assets of the business rather than an ownership interest. We’ll give you our reasoning and all the details when you read the full article.
- We’ll explain what the seller is after. Sellers are typically interested in two things… besides a lot of money. First, they want to insulate themselves from business-related liabilities after the sale. And, second, they want to collect the full amount of the sales price if they’re providing seller financing. From their perspective, it makes the most sense to sell the ownership interest in their business. All will be explained when you read the full article.
- We’ll show you how to find common ground. Initially you might think that because the buyer and seller have conflicting interests, no sale is possible. Not so! Actually, there are ways for both parties to engage in a win/win deal. Yes. It may call for a bit of compromise, but it is possible to creatively meet both buyer’s and seller’s needs as you’ll discover when you read the full article.