Have a Tax Question? Ask a Tax Expert
Welcome to Just Answer. I am here to help you resolve your tax and finance concerns. Please feel free to ask anytime you need extra help
In simple terms it works out about the same either way. Selling the stock in a corporation may be less costly tax wise since it will all be capital gain where in an asset sale some of the assets sold may be taxed as ordinary income. On the other hand selling a corporation may not be as easy as selling its assets because the buyer may wary of obligations not disclosed at the sale which could come back to haunt him/her.