If Your Sole-proprietorship Has A Tax Lien On It Can You Sell The Business? Or Can You Incorporate/form An LLC While In That State?

The business fell behind in paying both state and Fed. Taxes. It now has an agreement with both to make installment payments to pay off the old debt and is staying current on new taxes. Until the debt is payed off though, as a formality, the Fed. And State have each issued a lien against the business. Will this condition inhibit the option of selling the business and or changing it from a sole-proprietorship to an LLC or S-Corp?