Whats the difference between buying business assets versus shares?
When you buy the shares of a company you assume the assets and liabilities of the corporation. A corporation is considered as a separate legal entity and as the new owner of the corporate shares you would also be on the hook for any past mistakes that the corporation may have made, even prior to you having owned it. You would be responsible if the company were sued and would be responsible for its liabilities as well. As a business buyer please be aware that buying business assets is what is done in small business sales the vast majority of times. Buying business shares or stock is very seldom done for small businesses so please use caution if this is the type of deal that is being proposes. Especially if the business seller flat-out insists the deal be structured as a share sale. For all scenarios – buying business shares or buying business assets – please have your lawyer review anything you sign. Even in an asset purchase there are possibly some historic employee issues that might a
