Both the seller and purchaser of a group of assets that makes up a trade or business must use Form 8594 to report such a sale if:. When selling your business, you'll need to decide between an asset sale or a stock sale.It's important to understand how asset sales work. This manual provides a close-up look of how to report dispositions of business-use assets on Form 4797. These are the tax implications of selling a small business. You should complete your Schedule C as you would normally up to the date of the sale. The sale of a business is typically a frenetic time for both the seller and the purchaser. In a stock sale, the tax basis for shares in a company includes the purchase price and additional costs like commissions or transfer fees. Before you buy an existing business, find out if the business owes any Texas taxes.