Buying An LLC

A "Yes, We're Open" banner hangs in the foreground of a shop window with an out-of-focus couple in the background

If you're interested in owning a business but aren't interested in building one from scratch, you may want to know more about buying an existing business. There are many aspects involved in buying a company – including doing research into companies you're considering, calculating what you'd be willing to pay for the business, planning funding the purchase, creating written purchase agreements – but one of the first questions you may want to ask is, what should I know before I buy an LLC? Our business consulting services and Legal Protection Subscription Plans for Small Businesses will be able to help you with the process, giving you advice on the legal aspects of your purchase while our business consulting services help you plan how to run your new company. Read on for some basics on the idea of purchasing an LLC.

Research

Finding an LLC that you are interested in purchasing may take some research, including networking with family, friends, and others about what businesses might be for sale, as business owners don't always announce that they're looking for a buyer. Conferences and tradeshows can be another place to learn about opportunities to purchase existing businesses. Your local Chamber of Commerce is another avenue to find this information.

Explore Opportunities

Once you have identified businesses that are for sale or are open to the idea, it's time to learn everything you can about the business. Find out about any issues the business may be having, look over their books, contracts, and other documentation to help you make your decision. The business will also want to learn more about you, such as proof that you'll be able to financially make the purchase. Both parties will likely want a Non Disclosure Agreement in place.

Review

Once you have all the information, make sure to give it a thorough review, sifting through banking information, credits lines and loans, taxes, any other partnerships that may exist, employment records, sales records, and more. Knowing about the business' contracts and responsibilities beforehand will give you a better picture of how the business is run day-to-day than the bottom line profit-loss statements will.

Term Sheet

Once you have made your decision on which business to buy, official negotiations begin. Compose the terms of the purchase agreement in broad strokes - it will become more detailed later - that will help you with your purchase plan and commitments from the seller and from you. As time goes on and negotiations continue, this document will become more detailed. An added advantage is that everyone involved will have the same information.

Purchase Agreement

Finalizing the deal happens with all parties sign the purchase agreement, a legally binding document that details the purchase, including the price, the terms of the agreement, what all parties are agreeing to, and any other details that impact the business, the sale, or anyone involved in the business. the document is official once everyone signs it.

Business Ownership Information

Changing over the business ownership information ensures that the business officially reflects that you are the owner. Since state laws differ regarding notification of a change in ownership, you will need to check with your state government, the IRS, and any other entities or regulatory bodies to make sure that they have updated records of the change in ownership.

While you may not need a lawyer to buy an LLC, it can make the process less stressful and may make it faster. If you have any questions regarding your purchase, with our Legal Subscription Plans for Small Businesses are available 24/7 through our app to answer any questions you may have, give you advice, and review documents, contracts, and more, all for one low monthly fee. Once you've purchased your new business, our experienced small business attorneys can help you with dozens of aspects of your new business, including debt collection, contract and document review, employment concerns, and much more! Additionally, our Small Business Consultations can help you develop a plan to grow your new business, learn marketing techniques, and learn new skills. Sign up for our Legal Protection Subscription Plans for Small Businesses today or schedule a meeting with our business consultants!