buying-selling-ontario-business
Business Sale Tax Considerations
The purchase and sale of a private incorporated company in Canada raises a variety of important tax considerations. This paper provides an overview and analysis of such considerations and argues that the clear public policy objective of promoting small business in Canada using provisions of the Income Tax Act has been undermined by an unnecessarily…
Read MoreShare Sale or Corporate Redemption?
Frequently when restructuring a closely held private corporation shareholders must decide whether to transfer shares from one shareholder to another with a share purchase and sale or to have the corporation redeem (i.e. buy back) the shares from the shareholder, resulting in a reduction in the total number of issued and outstanding shares and increased…
Read MoreBuying or Selling a Business? Read This
There are two main ways to buy or sell an incorporated business: buying and selling its assets or buying and selling its shares. An asset purchase and sale consists of selling the corporation’s tangible (e.g. inventory and equipment) and intangible (e.g. goodwill and intellectual property) assets. Buyers often prefer asset sale transactions because business liabilities…
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