Small Business Taxes

Tax Implications of Selling or Closing Your Business

Updated 2025-10-28

Understand asset vs. stock sales, allocation of purchase price, liquidation steps, and how to wrap up tax accounts when closing.

  1. Deal structures: asset vs. stock
  2. Purchase price allocation
  3. Closing & liquidation steps
  4. State & local considerations
  5. Records & after‑close obligations

Deal structures: asset vs. stock

Asset sales can allow buyers to step up basis; stock sales may be simpler for sellers. Tax results differ by entity type.

Purchase price allocation

Allocate across asset classes (cash, receivables, inventory, fixed assets, intangibles, goodwill). File the appropriate forms to report the allocation.

Closing & liquidation steps

State & local considerations

Bulk sales notices, tax clearance certificates, and successor‑liability rules may apply—check state requirements early.

Records & after‑close obligations

Retain business records for required periods; keep access to old email, accounting, and payroll systems for notices and amendments.