You need to consult with a business attorney, explain the facts and provide him or her with the documents, to get an answer to your question.
I agree with attorney Beckerman. You need to consult with a business attorney regarding the sale of your business. You also have not provided enough information. Specifically, are you currently a sole proprietorship, corporation, LLC? Has your business been appraised? Do you have an offer to buy the business currently pending. These are just a few of the questions that need to be answered.
Phillip M. Smith Jr.
Los Angeles Tax & Business Attorney
Call: 323-292-4116 or 562-505-1004
THESE COMMENTS ARE NOT LEGAL ADVICE. They are provided for informational purposes only. Actual legal advice can only be provided after consultation by an attorney licensed in your jurisdiction. The answer to question does not create an attorney-client relationship or otherwise require further consultation. Mr. Smith is licensed to practice law throughout the state of California with offices in Los Angeles County. He is authorized to handle IRS matters throughout the United States, and is also licensed to practice before the United States Tax Court. His phone number is 323-292-4116 or his email address is firstname.lastname@example.org.
The answer is...maybe. There are important tax and liability considerations that might make it advisable to change your business entity. But the factors that go into that decision are too specific for a Q&A board such as this.
This is not legal advice, and we do not have an attorney-client relationship.