How to Structure a Business Asset Purchase with Taxes in Mind
Taxes are a major consideration in mergers and acquisitions (M&As). The parties generally can structure a business purchase as either:
1. An asset purchase. The buyer can purchase all or some of the assets of the business.
2. A purchase of stock (or another ownership interest). The buyer can purchase the seller’s ownership interest in the entity if the target business is operated as a corporation, partnership or limited liability company (LLC) that’s treated as a partnership or corporation for tax purposes. READ MORE