Whether you structure a sale as an asset sale vs. a stock sale\u00a0depends on taxes.\u00a0<\/strong><\/b><\/p>\n

Typically, a\u00a0stock sale is more beneficial for sellers.\u00a0<\/strong><\/b><\/p>\n

However, an\u00a0asset sale is more beneficial for buyers.\u00a0<\/strong><\/b><\/p>\n

When comparing an asset sale vs. a stock sale, it is critical to remember that there are\u00a0endless variations<\/strong><\/b>\u00a0of how both parties can create a contract.\u00a0<\/p>\n

Therefore, it\u2019s\u00a0best to receive professional advice<\/strong><\/b>\u00a0from tax and legal professionals before proceeding with any sale.\u00a0<\/p>\n

When selling assets, the\u00a0seller transfers a collection of their business\u2019s assets<\/strong><\/b>\u00a0to a prospective buyer.\u00a0<\/p>\n

Sometimes, these assets are\u00a0tangible<\/strong><\/b>, such as furniture, inventory, etc.\u00a0<\/p>\n

In other cases, the acquired assets are\u00a0intangible<\/strong><\/b>, such as the value of a brand, customer lists, etc.\u00a0<\/p>\n

Tax consequences of these types of sales vary depending on the type of corporation.\u00a0<\/strong><\/b><\/p>\n

During stock sales, the\u00a0buyer purchases shareholder stock<\/strong><\/b>\u00a0directly from the seller.\u00a0<\/p>\n

Again, there are various tax implications each party must be aware of.\u00a0<\/p>\n

Therefore, it is always best to have a professional help you negotiate these deals.<\/p>\n

So, what\u2019s better, an asset sale vs stock sale?\u00a0The answer depends on whether you are a buyer or seller.\u00a0<\/strong><\/b><\/p>\n

Additionally, the\u00a0type of contract and tax benefits<\/strong><\/b>\u00a0strongly impact which type of sale is best in your situation.\u00a0<\/p>\n<\/p><\/div>\n

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