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Thank you for writing this. It's incredibly important and basically no one talks about it. I can only reiterate what you've said: - Selling your company in an
by trevmckendrick 10y ago
Thank you for writing this. It's incredibly important and basically no one talks about it.
I can only reiterate what you've said:
- Selling your company in an asset sale as a C-Corp increases your taxes 20-30% or more
- Unless you're a BFD and have tons of inbound acquisition interest, the acquirer is going to dictate whether it's a stock sale or an asset sale, and they will almost always want an asset sale (less liability for them)
- You should only be a C-Corp in the first place if you're a venture backed startup. Start with an LLC and just do a conversion to a C-Corp when you raise money; this maximizes your optionality.