Q: I'd like to buy a business in my town - should I buy it as a corporation?

A: You should buy only the assets of the business, not the stock or membership interest of the entity that currently owns the business. Most like you should form your own entity - either a corporation or limited liability company to own the business. You should consult with an attorney to advise you. Depending on the type of business, it is likely you will want to own the business as a corporation or LLC.

A: There are many things to consider as to manner in which you should structure the acquisition of another company. For purposes of liability, the buyer generally prefers to purchase a business by using an Asset Acquisition Agreement. This will allow the buyer to exclude any unwanted liabilities. There are considerations that should be discussed with your business lawyer as far as agreement as to how the purchase price is allocated among the assets of the company, as this will have tax implications on both the buyer and the seller. You should consult with an attorney with experience in the purchase and sale of businesses, preferably before you discuss any terms, including purchase price, with the seller.

Since I do not have all the facts of your particular situation, nothing I have said shall be construed as legal advice and no attorney-client relationship has been formed due to my answer to your question.

A: You should buy the assets of the business and limit your potential liability for any taxes or other obligations of the business you are acquiring. You should probably buy the business using a new LLC or Corporation. Contact a business attorney in your area for assistance.