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Can taxpayers go so far as to enter into an agreement before engaging in the proposed method? Entity merger is a merger that involves at least two different types of business entities.The Division of Corporations provides these forms as a general guide. Certificate of Merger - Cross Entity Merger. 708 governs the tax treatment of LLC mergers, from a legal standpoint, LLC mergers must be completed in accordance with state law. In an acquisition, one company purchases another outright. Business Entity Reports. The Model Entity Transactions Act Merger . The Secretary of State has a form for "Cross Entity Mergers" that you can use to prepare your certificate of merger. Once these tasks are completed, the HR team should take immediate steps to "re-recruit" and place these employees into key positions of the new entity.