Buying someone else's business

[piperclark]

What is the name of your state? MN
I'm looking to buy a coffee shop, but I'm a little wary of their accounting practices. What is my legal liability if I buy them out? Is there a way I can keep their name and not be liable if anything comes up or do I have to close the shop down and reopen as a new entity?

 

[BelizeBreeze]

What is the name of your state? MN
I'm looking to buy a coffee shop, but I'm a little wary of their accounting practices. What is my legal liability if I buy them out? Is there a way I can keep their name and not be liable if anything comes up or do I have to close the shop down and reopen as a new entity?

Try to follow here: Would you answer a question from me such as "If I have cancer can I sue the person who smokes around me?"

If not, then re read your question. How do you expect a legally valid answer from strangers on the internet where we have no chance to go over the books, thoroughly read the purchase contract or even the contracts with suppliers and equipment vendors?

Take your purchase agreement to a local attorney for a thorough review. There are ways to do what you want and indemnify yourself from future lawsuits, but without a thorough review, I'm not going to waste your time or mine.

 

[piperclark]

Thank you for reply (if not a bit abrupt)

I very much appreciate your reply. Maybe I should have been more clear about what I was looking for. As you've implied in your response, there is some hope of being able to organize the legalities so we can be more confident about approaching a lawyer with it. If there was no hope, I would have turned the purchase down flat and moved on.

I apologize if there was any time wasted on your part, but I got what I was looking for.

 

[Some Random Guy]

Buy the assets

Simply create a new company and purchase the assets of the company including their name. All employees will be terminated and possibly rehired by your company. Make it clear that all back salary, taxes, rent, etc will be paid by the old company or owner. Make sure that having your company assume the lease will not be a problem with the landlord. Look out for any other long-term obligations that could come back and bite the old owner - things like phone service or internet connectouns which could have early termination fees.

Get a lawyer experienced in this sort of thing.

 

[piperclark]

Thank you so much

That was EXACTLY what I was looking for from this forum. You gave me some understanding of the concept and how to approach it. From here on in, I'll take it to a lawyer.

Thank you so much for your time.

 

[kevin fortuna]

definitely get professional advice

agree with other posters that you should seek advice of a good attorney. otherwise you could really get into quicksand.




kevin fortuna






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kevin fortuna