You aren’t technically their boss until you offer them a new contract under your new entity.
The biggest perk of an asset purchase is protection. When you buy a company’s stock, you inherit its history—including potential lawsuits, unpaid taxes, or hidden debts. When you buy assets, you are generally starting a fresh legal entity. You get the tools to make money without the "skeletons in the closet" from the previous owner's management. 3. Big Tax Advantages (Step-Up in Basis) buying a business assets only
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" You aren’t technically their boss until you offer
You usually have to apply for your own tax IDs and local operating permits from scratch. The Bottom Line When you buy assets, you are generally starting