Start Your Research
Proper research is a key component of buying a new business. You should begin by contacting a local business broker or looking at some of the online business broker websites. Make sure to thoroughly investigate all your options.
The financial status of the business you are about to purchase is eminently important. Be sure to review the revenue and costs closely.
Due Diligence Package
The investigation of a business before the signing of any binding contract is known as Due Diligence. The process includes examining past tax returns, viable contracts, and any employee or contractor agreements.
Unless you are very familiar with the business for sale, you should look into how successful a location they are working from is. Ask questions like: Is it visible to pedestrians walking near the area?
Adopting the Name
Changing the name or logo of your purchased business is an important decision. If you don’t plan on making any major changes to the business in the beginning, then it may be in your best interest to keep the original.
Paying Taxes Owed
If you’ve decided to buy the business, in order to avoid successor liability, you must obtain a Tax Clearance Certificate signifying that there are no unpaid taxes owed.
When you purchase a business, the Connecticut Department of Labor states that the purchaser of the existing business will become a full or part successor of the previous employe
Determining a fair price for the business can sometimes be a difficult undertaking.
Closing on a Business
Legal counsel is advised for this final step in purchasing a business to review all the documentation regarding the transfer of the company. The specific process of closing is comprised of the following: