When selling a business in Ontario, one of the first decisions owners face is whether to structure the deal as an asset sale or a share sale. Each approach comes with distinct legal, tax, and practical considerations that affect both the buyer and the seller. This guide breaks down the key differences, advantages, and drawbacks of each option—and how to decide which structure best suits your goals.

Section 84.1 of the Income Tax Act can turn a tax-efficient business transaction into a fully taxable event. This article shows business owners and advisors how to avoid common pitfalls, outlining practical steps to structure share sales, family transfers, and business exits so you remain compliant and minimize costly tax consequences.