Main Street Business #544 The Tax & Legal Playbook To Buying Businesses Part 2
Nov 14, 2024
36:54
In this episode of the Main Street Business Podcast, hosts Mark J. Kohler and Mat Sorensen reveal the key legal steps for buying a business, highlighting the differences between asset and stock purchases. They explain why an asset purchase agreement offers greater control, tax benefits, and protection through non-compete clauses, while exploring funding options from cash to SBA loans. With practical advice and insights, Mark & Mat emphasize the role of legal counsel in ensuring a smooth transition, reducing risks, and maximizing your investment.
Here are some of the highlights:
- Mark and Mat begin with a discussion of the two main contract options: asset purchase and stock purchase.
- Mark explains the tax benefits of an asset purchase, including the ability to allocate purchase price to different assets and immediate depreciation deductions.
- Outline of the key elements that should be included in the asset purchase agreement, such as a detailed list of assets included or excluded in the sale.
- The importance of funding options, including cash, SBA loans, and seller financing, and the need for a tight operating agreement if investors are involved.
- Mat breaks down the different funding options available for buying a business, including cash, SBA loans, and seller financing.
- The benefits of using an LLC or S corp for the new business entity and the importance of not buying the seller's existing entity.
- The steps involved in closing the deal, including signing the asset purchase agreement, issuing a bill of sale, and handling promissory notes and releases of liens.
- Grab my eBook 30 Unique Strategies Every Business Owner Should Know!
- You don't want to miss this! Secure your tickets for the #1 Event For Small Business Owners On Main Street America: Main Street 360
- Looking to connect with a rock star law firm? KKOS is only a click away!
- Are you ready to get certified in EVERY strategy I teach? Start your journey with a FREE 15-minute discovery call to explore the Main Street Tax Pro Certification.
- Check out our YOUTUBE Channel Here: https://www.youtube.com/markjkohler
- Craving more content? Check out my Instagram!