Selling your C Corp entity affects your taxes in these ways: Double Taxation: If your C Corp sells its assets, the corporation pays tax on any gains at the corporate level. Shareholders also pay taxes on any dividends or distributions received from the proceeds of the sale. Capital Gains on Stock Sale: If shareholders sell their stock in the C Corp, they may incur capital gains tax on the difference between the sale price and their basis in the stock. Asset Sale vs. Stock Sale: The tax implications can differ significantly based on whether the transaction is an asset sale or a stock sale. Asset sales may result in higher taxes due to corporate-level taxation followed by shareholder-level taxation upon distribution of proceeds. State Taxes: Additional state taxes may apply depending on the state laws where your corporation operates.