{"id":4645,"date":"2016-04-04T10:47:37","date_gmt":"2016-04-04T15:47:37","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/closing-a-business\/completing-an-asset-sale.html"},"modified":"2024-05-23T00:49:48","modified_gmt":"2024-05-23T05:49:48","slug":"completing-an-asset-sale","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/closing-a-business\/completing-an-asset-sale.html","title":{"rendered":"Completing an Asset Sale"},"content":{"rendered":"\n
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Completing an Asset Sale<\/h1>\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Susan Mills Richmond, Esq.<\/a>\n | Last updated\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Selling a business is confusing and time-consuming. The parties must choose between an asset sale and a stock sale. Both types of sales have advantages and disadvantages. <\/p>\r\n

In stock sales, buyers purchase the shareholders’ stock and direct ownership in the business entity. Small businesses, such as sole proprietorships, may not meet all requirements for a stock sale. Larger companies favor stock sales because they can keep control over intangible assets.<\/p>\r\n

In an asset sale<\/a>, the new owner purchases the business’s physical assets. The seller retains all rights to the legal entity. The buyer purchases the assets, including equipment, fixtures, and goodwill. <\/p>\r\n

This article reviews what small business owners need to complete an asset purchase of their business. Visit FindLaw’s Closing a Business <\/a>page for more information on dissolving your company<\/a>.<\/p>\r\n

What Is an Asset Sale?<\/h2>\r\n

In an asset sale, the buyer purchases the business assets. The buyer may acquire the entire business in the sale, but the fair market value determines the selling price of the tangible and intangible assets.<\/p>\r\n

The assets of the business can include:<\/p>\r\n