Does buying the business affect a foreign worker's LMIA-tied work permit status?

It can, and this is a federal immigration matter rather than something governed by Ontario employment or corporate law, so it needs its own specific attention. Many employer-specific work permits tied to a Labour Market Impact Assessment are approved for a particular employer, in a particular role, on particular terms — and a change in who legally employs the worker, which happens automatically in an asset purchase (a new legal entity) but generally not in a share purchase (the same corporation continues), can affect whether that worker's existing authorization still covers their new employment situation.

In a share purchase, since the employing corporation doesn't change, this is generally less disruptive. In an asset purchase, because you're a new legal employer, continuing to employ someone whose work permit was tied specifically to the seller can require updating the permit, a new Labour Market Impact Assessment, or other federal immigration steps before you can properly continue employing them, depending on the specific permit and program involved.

If your business employs any foreign workers on employer-specific permits, get this reviewed as its own federal immigration matter well before closing, since gaps here can affect someone's legal ability to keep working at all. A Treadstone business lawyer can help identify which employees need this review.