Glossary · People and paperwork
In short
This is how a business is legally organized (e.g., LLC, corporation, sole proprietorship). It impacts liability, taxes, and how the business can be bought or sold.
For an acquisition, you'll decide whether to continue the seller's structure or form a new one, typically an LLC for liability protection and tax flexibility. This decision affects your personal liability and future tax obligations. Consult with your attorney and tax advisor.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Know what you'll need before you apply
Tell us about the deal and who's buying — we'll flag the guaranty, eligibility, and paperwork issues that slow SBA approval before they cost you time.
Free · No documents · Usually same-day