Should I consider a stock purchase agreement or asset purchase agreement when preparing for the sale of my entity?

Both stock purchase agreements and asset purchase agreements offer pros and cons that must be considered throughout the process of a corporate transaction. The formation of a stock purchase agreement is a straightforward process and allows the buyer to purchase the entire entity, including all of its assets and liabilities. However, this means the buyer may incur any unwanted liabilities. On the other hand, an asset purchase agreement is a more complex process that allows the buyer to select the assets and liabilities they would like to incur. The buyer may be subject to greater tax benefits through an asset purchase agreement than through a stock purchase agreement.