{"id":5131,"date":"2016-04-04T10:47:57","date_gmt":"2016-04-04T15:47:57","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/asset-purchase-vs-stock-purchase-advantages-and-disadvantages.html"},"modified":"2026-06-09T11:55:00","modified_gmt":"2026-06-09T16:55:00","slug":"asset-purchase-vs-stock-purchase-advantages-and-disadvantages","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/asset-purchase-vs-stock-purchase-advantages-and-disadvantages.html","title":{"rendered":"Asset Purchase vs. Stock Purchase: Advantages and Disadvantages"},"content":{"rendered":"\n
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Asset Purchase vs. Stock Purchase: Advantages and Disadvantages<\/h1>\n\n
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\n By Amber Sheppard, Esq.<\/a> | Legally reviewed by Catherine Hodder, 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\n\n

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Key Takeaways<\/h2>\n

In deciding to purchase an\u00a0existing business, the buyer must determine whether they will buy the assets or the stock of the business entity. An\u00a0asset purchase\u00a0involves the purchase of the selling company\u2019s assets. This includes facilities, vehicles, equipment, and stock or inventory. A stock purchase consists of purchasing the selling company\u2019s stock only.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

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Availability of Sale Depends on Business Entity<\/h2>\n

The type of sale<\/span> available to you depends on the\u00a0legal entity<\/span><\/a>\u00a0of the selling business. You can find the legal structure of the selling business on the\u00a0Secretary of State website<\/a>.<\/p>\n

Sole Proprietorship, Partnerships, and LLCs<\/span><\/h3>\n

If you want to buy these types of businesses, you can\u2019t do a stock deal<\/span>:<\/p>\n