Many people choose not to start up a new business, but to purchase one that is already up for sale in the area. Some may inherit or purchase a business from a close or distant relative, while others may choose to buy the structure of the business and change the entirety of it on the inside. There are thousands of ways that you can go wrong in purchasing a business, especially if you are just starting out as your own entrepreneur.
There are tons of laws that come into play when purchasing an already established business. These laws can include real estate, property, employment, contract, and more depending on the type of business and how well it is established. Here are how these laws can affect an already established business being sold to another owner.
Real Estate Law: The actual location or structure of the business may be rented out instead of owned. However, if it is owned by the previous business owner, then chances are you will be dealing with real estate law when attempting to purchase the business and the structure.
Property Law: The equipment that is inside the store upon purchase may or may not be included in the business purchase. This would be an issue where property law would come into play. The previous owner will state whether or not the equipment or other materials pertaining to the business shall come with it or if they will be removing it.
Employment Law: The employees who were working for the previous owner may or may not switch to working for you. This will fall under the employment law.
Contract Law: Contract law encompasses the rules of a contract that may or may not deal with hiring new employees or purchasing supplies to keep the business running. Contracts are important as a dispute or breach in the contract could cause arguments and eventually money from someone’s pocket.
All of these laws may play a major role when purchasing an already established business. It is best to have a professional attorney who deals with business law and has a background with the other laws as they can provide the means of information and know-how to your purchase. They can also help to instruct you on how to create contracts and how to go about legal processes if ever a contract is breached. Even if you have no problems with the purchase, having a lawyer on hand to help with any issue is ideal.