Company and business transfers can be complicated and tricky; they don’t move from person to person like selling a car, for example. It’s quite possible to sell a business and then years later and seller finds himself still liable for what the business may have done. This is typical with environmental impacts. To avoid these kinds of headaches having a good attorney involved can be a very smart investment in the preparation process.
Private Ownership vs. Partnership vs. Corporation
Depending how a business is owned can make a big difference in how it is transferred. While a sole proprietorship can be a very simple matter of transferring all rights from one party to another, a partnership or corporation can involve one party wanting to leave while the others want to stay. Each owner has a share which, depending how the group was defined in the beginning, has rights attached to it. It is often the case that group splits are focused on keeping the business going and vetting a new player before selling. This can be handled roughly or smoothly; the difference in transfer success is often the legal work in ensuring the business will continue for those who stay and fair price for the player who leaves.
Clean Cut Protection
As mentioned before, liabilities can follow a former owner if a transfer agreement is not clear about all rights and ownership elements being moved over. This is why having a professional attorney examine an agreement is so critical. When a new buyer takes over a business, he should be ideally taking it over in entirety. A well-crafted agreement will make sure this is the case.
Taxes
Government taxation is always present in every form of a business, regardless of who the owner is. To ensure that taxes are paid timely and correctly, a business transfer needs to be clear as to when and who the tax liability transfers to for the business. Because this issue involves federal, state and even municipal tax agencies, the process takes some homework to make sure every responsibility is covered. This is not an area to skip over; audits can be extremely costly, especially with unpaid taxes and late payment penalties.
Professional Washington Services
For those considering a business transfer and needing the help of a Washington state business transfers attorney, Attorney Gary Schuetz is an extremely smart pick. He has worked for years as a Renton business lawyer, guiding dozens of clients through transfers and acquisition agreements. Don’t take the risk of transferring alone; do it right the first time with a good legal professional in Gary Schuetz.