---
title: "Buying a Business in BC: The Accounting and Tax Checklist"
url: https://www.everstonecpa.com/blog/buying-a-business-bc-checklist
description: "Buying a business in BC: asset or share purchase, the GST44 election, price allocation, clearances and the records to ask for before you sign. Check it."
updated: 2026-10-12
publisher: EverStone CPA Inc. (Chartered Professional Accountant firm, Abbotsford, BC)
service_area: British Columbia, Ontario and Manitoba
---

[Home](https://www.everstonecpa.com/) [Blog](https://www.everstonecpa.com/blog) Buying a business in BC: checklist

Buying a business

# Buying a business in BC: *the accounting and tax checklist*

By EverStone CPA · Updated October 2026 · 7 min read

**Quick answer:** Before you sign, decide whether you are buying assets or shares, check whether the GST44 election applies, agree how the price is split between inventory, equipment and goodwill, and get three years of financial statements, tax filings and the payroll and WorkSafeBC records. Each choice changes the tax you pay later.

## Assets or shares

In an asset purchase you buy the equipment, inventory, contracts and goodwill, and leave the seller's company behind. In a share purchase you buy the company itself, with its history, its tax filings and any liabilities inside it. Sellers often prefer a share sale for their own tax reasons; buyers often prefer assets. The choice affects your tax deductions, your exposure to past problems and the price. See [business advisory](https://www.everstonecpa.com/advisory-services).

## GST on the purchase

In an asset purchase, GST can apply to the assets. Where the buyer acquires all or substantially all of the property needed to carry on the business and both parties qualify, the [GST44 election](https://www.everstonecpa.com/forms/gst44) lets the sale go ahead without GST being charged. PST can apply to some tangible assets in BC, so ask before you settle the price.

## Purchase price allocation

How the price is split between inventory, equipment, buildings, land and goodwill decides how quickly you can deduct it. Equipment is claimed through [capital cost allowance](https://www.everstonecpa.com/blog/capital-cost-allowance-cca-classes-canada) over several years; inventory is deducted as it is sold. Agree the allocation in the purchase agreement rather than leaving it for the year-end.

## Records to ask for before you sign

- Three years of financial statements and corporate tax returns.

- GST/HST and PST returns, and confirmation the accounts are up to date.

- Payroll records and a WorkSafeBC clearance letter.

- Leases, supplier contracts and customer contracts that transfer with the business.

- A list of equipment with its cost and age.

- In a share purchase, the minute book and any CRA correspondence.

## After the purchase

Set up the books from day one with the agreed allocation, register for the accounts you need with the CRA, and decide how you will pay yourself. If you bought shares, [switching the company to your own accountant](https://www.everstonecpa.com/switching-accountants) is usually a one-form step.

## Frequently asked questions about buying a business

**Should I buy assets or shares?**

It depends on the price, the company's history and the tax position of both sides. Have an accountant model both before you agree terms.

**When does GST not apply to buying a business?**

When the GST44 election applies, generally where you buy all or substantially all of the property needed to carry on the business and both parties meet the conditions. [GST44 explained](https://www.everstonecpa.com/forms/gst44).

**What should I ask the seller's accountant for?**

Financial statements and tax returns for three years, sales tax and payroll filings, and anything the CRA has sent in that period.

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Source: https://www.everstonecpa.com/blog/buying-a-business-bc-checklist
Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online