On behalf of Thaler Law posted in business formation on Wednesday, May 15, 2019.
Starting a business can be an exciting step for California entrepreneurs, but it is not always the optimal choice for those looking to own their own business. In some cases, it is smarter to purchase an existing business than to navigate the business formation process. There are many benefits to taking this route, but a potential business owner will want to think carefully about the long-term implications of any choice regarding his or her business.
One of the benefits of buying a business instead of starting one is that the buyer will obtain a proven business plan and be able to earn a profit faster. When it is not necessary to start a business from the ground up, an owner may see a faster return on his or her initial investment. It is important, however, to fully understand the type of business the company is and what that means for personal liability and taxes.
It is quite common for a person to find successful small businesses for sale. It may be possible to negotiate a deal with the owner that does not involve having to pay an exorbitant amount of money upfront. Regardless of how a potential owner goes about the purchase of a business, it’s prudent to carefully review the terms of any contract before signing.
The business formation process is complex, and a California entrepreneur may want to skip that step altogether by buying an existing business. Whether walking through formation process or buying a business, it can be helpful to have the guidance of an experienced business law attorney. A complete assessment of the individual case can help an owner understand his or her options.