What’s the smart way to acquire a business?
The answer is simple…
Buy the target company’s stock and treat the deal as an asset purchase!
When you do, both you and the seller benefit tax-wise.
But be aware of this important fact… When you’re buying a business, you really have to know what you’re doing. Which is why I suggest that before you do anything, you take a close look at my new article Tax Tips: How to Buy a Target’s Stock and Treat the Deal as an Asset Purchase?
Three ways our fact-filled article can help you:
- You’ll learn why you should consider a “Section 338 election.” By making a Section 338 election, you’ll get all the tax advantages of an asset purchase with most of the benefits of a stock purchase. When you make this election, the IRS Code is your friend as we’ll explain when you read the full article.
- We’ll tell you the right way to acquire the stock of an S corporation. There are five steps you need to take in order to implement a Section 338(h)(10) election. We’ll explain each in detail when you read the full article.
- We’ll explain the smart way to acquire a C corporation. You can use a Section 338 election for a purchase/sale of a C corporation. But there are some important caveats you need to be aware of. You’ll get the whole story when you read the full article.