What is an Entity Purchase?
An entity purchase occurs when the buyer purchases the interest of the people or entities that own the company that owns the business. Most businesses today are owned and operated by a corporation, limited liability company or a partnership. An entity purchase occurs if the buyer buys all of: (i) the stock of a corporation, (ii) the membership interests of a limited liability company, or (iii) the partnership interests of a partnership. When an entity purchase occurs, the buyer steps into the shoes of and replaces the prior owner(s) of the entity that owns and operates a business. The public may or may not know that there is a new owner. The title to all the assets of the business remains in the name of the entity.
Related Questions
- Can a taxpayer purchase the replacement property in a different name/entity than the entity which owned the Relinquished Property?
- Can I, as a Mexican foreigner, purchase property within the restricted zone under a Mexican Corporation entity?
- Can a company or other non-personal entity purchase a Residence Club Ownership?
