Difference Between Asset Sale And Stock Sale For A Company In San Jose

Category:

Small Business - Business Sale

State:

Multi-State

City:

San Jose

Control #:

US-00418

Format:

Instant download

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Description

This form is an Asset Purchase Agreement. The buyer agrees to purchase from the seller certain assets which are listed in the agreement. The form also provides a listing of certain assets which will be excluded from the sale. The form must be signed in the presence of a notary public.

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An asset sale is the purchase of individual assets and liabilities, whereas a stock sale is the purchase of the owner's shares of a corporation. A stock purchase is a complete purchase of a company, including all the assets and liabilities.Stock purchases thus have different tax outcomes. Asset Sale lets buyers choose specific assets and liabilities; Stock Sale doesn't. As opposed to an asset purchase, a stock purchase usually results in a new owner taking on a business and all of its liabilities—both known and unknown. With an asset sale, the buyer is buying the assets of the business. These assets will be identified in the purchase and sale agreement. A stock sale is when the owner sells off stock shares.

Difference Between Asset Sale And Stock Sale For A Company In San Jose

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