QUESTION

Is it easier to sell the business as an S-Corp or C-Corp

Asked on Dec 20th, 2019 on Business Law - Iowa
More details to this question:
I just launched a start up as a sole proprietor. When income exeeds $200k in a few years, I'll turn it into a corporation. Can I sell the business in shares, instead of selling off assets?
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1 ANSWER

Appellate Practice Attorney serving New York, NY
I admire your optimism, and I hope that your prediction that your business will produce over $200,000 of annual income in a few years comes true.  Whether your business is an S or a C corporation,you can sell it through an asset sale or a stock sale, whichever structure works better.  Often the buyer prefers an asset sale where the corporation has significant obligations, as the new owner doesn;t want to be responsible for those obligations.
Answered on Dec 23rd, 2019 at 1:46 PM

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