The sale of stock, rather than assets, is generally preferable to the target firm shareholders to avoid double taxation, if the target firm is structured as a limited liability company.

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Limited Liability Companies (LLCs) are typically taxed as pass-through entities, meaning profits and losses pass through to the owners without being taxed at the company level, thus avoiding the double taxation issue that affects C corporations.

The Sale of Stock, Rather Than Assets, Is Generally Preferable