Glossary · People and paperwork
In short
This is how a business is legally organized (e.g., LLC, Corporation, Sole Proprietor). It affects liability, taxes, and how you structure the acquisition.
The legal structure of the business you're buying (Sole Proprietor, Partnership, LLC, S-Corp, C-Corp) significantly impacts the acquisition process. It dictates whether you'll do a stock purchase or an asset purchase, and how liabilities and taxes are handled. Understand the implications for your own legal entity and tax situation before closing.
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.
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