Glossary · People and paperwork
In short
How the business is structured for tax purposes (e.g., S-Corp, C-Corp, LLC, Sole Proprietor). This affects how the business's income and expenses are reported and taxed, directly impacting your personal tax situation.
Your personal and business tax status dictates how profits and losses flow through. During due diligence, you'll review historical tax returns to verify reported income and expenses, ensuring consistency with financial statements. Your CPA will advise on the optimal tax structure post-acquisition, often aligning with your personal tax strategy.
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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