Assets Only — Buying A Business

Buying a Business: The "Asset Only" Approach When you buy a business, you generally have two paths: buying the entity itself (stock purchase) or buying only its "stuff" (asset purchase). For most independent buyers, an is the cleaner, safer, and more tax-efficient route. Here is why it works and what to watch out for. 1. You Get the "Cherry-Picks"

In an asset sale, you choose exactly what you want. This typically includes: buying a business assets only

From a tax perspective, buyers love asset sales. You can "step up" the basis of the assets to their current purchase price. For example, if you buy a piece of equipment for $50,000 that the seller had already fully depreciated, you can start depreciating that $50,000 all over again. This creates a massive tax shield that keeps more cash in your pocket during the critical first few years of operation. 4. The Challenges: Complexity and Consent Buying a Business: The "Asset Only" Approach When

The value of the business’s reputation and established presence. You can "step up" the basis of the

You usually have to apply for your own tax IDs and local operating permits from scratch. The Bottom Line