So you want to be a small business owner but you don’t want to start from scratch? Buying an existing business can be a good option. However, there are a few considerations when you purchase an existing business in California. Here are some things to watch out for.
- Seller’s permit – The seller’s permit doesn’t transfer to you when you buy a business, so if your new company involves retail, you will have to apply for a seller’s permit. This applies even if you only sell seasonally.
- Company financial documents – In order to know the state of the business, you need to see the financial documents and understand them. You don’t want to buy a business that has a huge tax debt, for example.
- Intellectual property – The business you are buying may only be successful against larger competitors due to IP such as a good brand name, website, logo, and the like. Be sure that you are buying all of these competitive advantages along with the company.
- Contracts and agreements – Be sure to review any of the company’s contracts and agreements that you may be subject to such as employment agreements or a property or equipment lease.
Hiring a Small Business Attorney to Help You with Your Purchase
Before you purchase a business in California, it makes sense to get the advice of a small business attorney. At Pokala Law APC APC, we are a small business ourselves, so we understand your unique needs, and we offer the affordable services you want. Call us today at 844-695-1487 to get started, or you can contact us online.
