Customized Solutions For Your Legal Problems
  1. Home
  2.  | 
  3. Business Law
  4.  | Buying And Selling Businesses

Buying And Selling Businesses

The first step in protecting yourself during the transfer of a business is to ensure the contract that has been prepared protects your interests prior to the closing of the transaction. A qualified attorney can be invaluable during the process of purchasing or selling a business.

The fundamental question when purchasing or selling any business is whether the transfer is an “asset purchase” (when the purchaser is buying only the assets of the company and not its liabilities) or a “stock purchase” (when the purchaser of the business is buying the stock of the company or the units of membership interests of a limited liability company as well as all the company’s liabilities). There are certain tax consequences or benefits that are contingent upon whether the transaction is structured as an asset purchase or a stock purchase, and the way that certain assets are classified within the contract for the purchase and sale of the relevant business will also affect the purchaser and seller’s future tax consequences.

The assistance of an attorney familiar with the transfer of business interests is essential in negotiating a contract that will protect your interests regarding the business both prior to and subsequent to closing.