• FAQ

Is it better to sell the assets or the shares of your business?

With respect to the business owner who operates a company that is not incorporated, the answer is simple since he will always sell his assets, i.e. the goods used in the business, such as its inventory, equipment, client lists and goodwill. If, on the other hand, you operate an incorporated business that is, in fact, a legal entity, a choice must be made: sell the corporate “shell”, with or without its content. Imagine a box (corporation) which contains many items (assets). Each item can be sold while keeping the box (sale of assets) or the box can be sold with all of its contents (sale of shares). Different legal and tax consequences would apply to each option.