The Woodlands, TX business attorney Steven C. Earl discusses the legal and financial implications of purchasing the business assets versus the business entity. For individuals considering a business purchase, one of their initial decisions should revolve around the level of liability they are prepared to undertake for the business’s prior operations. To arrive at an informed choice, they must weigh the consequences of acquiring either the business’s stock or its assets.

In cases where buyers decide to procure a business’s assets, it is customary for them to do so without shouldering any preexisting liabilities tied to the business. Conversely, if they opt for purchasing the stock, they effectively assume the business as a whole, including all its existing liabilities.