buying a small biz

[sgt2000]

We are looking at an existing coffee shop for sale in Mass, operating as an
S-Corporation and have several questions. First, can we change the structure to General Partnership at time of purchase? What are our options if we don't want to buy this biz as a corp? Also what are our general tax liabilities when buying a biz and specifically the tax liabilities if we buy as a partnership? Also, we are considering changing the name at the time of purchase, and wonder what the advantages and disadvanges are in doing this. Any advise to 2 inexperienced biz buyers is appreciated.

 

[dkitchell]

I AM NOT A LAWYER!!!!!

However as a small business owner , I strongly suggest you NOT change to a partentrship, there are too many liability concerns. someone slips on the ice outside youre store boom everything you and your family owns is in their pocket, or they burn themselves on hot coffe , an employee with hepatitis a gives it out to the customers ect, ect, ect. partnerships are not the way to go. Also as a business owner who sold his business I suggest you do total due dilligence. look at the books with a microscope, go into the shop undercover , watch it count how many customers go in and out per day, you can estimate the income from the foot traffic. most of all dont just blindly trust that this oppurtunity is or will be profitable , examine their motives for the sale. ask for the tax records ext . make sure you have the ongoing capital support to make profitibility a reality. and good luck!