Buying a business without hiring a lawyer to assist you in the process may be a bad idea. Some companies aren’t straightforward, and you may likely face legal challenges from tenant claims, corporate ownership, environmental issue, leaseholds, and many other issues. If you hire a lawyer, he’ll help identify these legal complexities and save you from spending more.
A business lawyer will also ensure you get the right property and aren’t inheriting liabilities you don’t know anything about. Some business sellers may want to sell their companies because they are straddled with debts or are bankrupt. In such a case, it’s only a professional business lawyer who can take you through understanding the business buying process to protect you from being conned and help you determine the viability of the business. This article gives you some reasons why hiring a lawyer is essential before purchasing any business.
1. Determining The Value Of The Business
You need a lawyer or advice from a business broker to help you know the real value of the business you’re buying. He’ll assist you in filing the relevant paperwork like purchase and acquisition agreements. Apart from that, he’ll also work to ensure you’re buying a healthy business and help you transfer permits and licenses.
2. Creating A Business Structure
The business structure you develop can make or break your business. Though you can get information about creating a business structure by researching the internet, it’ll take you a long time. A good business lawyer can help you make the best structure and advise you on whether to start a sole proprietorship, limited company, partnership, corporation or nonprofit organization.
The structure you choose will affect your exposure to tax obligations, ongoing expenses, personal liabilities, ease of acquiring funds, and start-up fees. Therefore, you need to hire an experienced lawyer to help you make informed decisions before selecting a business structure.
3. Drafting Employee Agreement
When you purchase a business, you’ll be required to either retain the employees or lay them off. If you choose to keep them, you need to draft an employment agreement to ensure employees don’t pressure you to give them what they want and protect the organization’s secret. A lawyer can help you prepare a contract with non-disclosure clauses to protect your business.
4. Registering Your Business
A business lawyer can help you register your business, get the relevant tax identification numbers, and explain the tax implications of various transactions. That way, when your accountant files the tax returns, you’ll not live with the fear of brushing shoulders with tax authorities. Apart from that, your lawyer may also assist you in acquiring the relevant licenses.
5. Getting Intellectual Property
If you intend to purchase a design or media business, you’ll need copyright protection. A lawyer can help you to get your products and services registered for copyright and trademark protection.
Though it’s not a must to hire a lawyer through the process of buying a business, you may need one to prevent future problems. There are matters concerning your business that you can easily handle. However, legal issues require a lawyer’s professional services.