March 12, 2019

Why Buy Assets Instead of Corporations

When you buy a business, you have a choice, should you buy the assets of the business or buy the legal entity, typically a corporation?  In most sales, it is better for the buyer to buy the assets.  Here are the reasons why. Liabilities – If you buy the corporation, you are assuming any legal liabilities that the corporation has, or will have, based on actions taken before you bought the business. Here are some of these.  Liability for unpaid income taxes can go back seven years.  Another liability can be a workmen comp claim or additional insurance premiums due.   Other potential claims are human relations related, such as a claim of discrimination or sexual harassment.   Or, product liability claims […]