what questions do i need to ask an attorney about buying a business?

Here are 10 key questions to help you find an attorney who is just the right fit for your business: How much experience do you have with my industry? Such issues as intellectual property, franchise agreements and service contracts require special knowledge and skills, says Leach.

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What questions should I Ask my attorney before hiring a lawyer?

If you are still not convinced you need an attorney, consider the following ten questions and how you would answer them. ... Aldar "Ten Questions to Ask Your Attorney If You Are Buying a Business." Ten Questions to Ask Your Attorney If You Are Buying a Business. ... Ten Questions to Ask Your Attorney If You Are Buying a Business EzineArticles.com.

What questions to ask when buying a business?

Mar 21, 2018 · The initial questions to ask when buying a business involve answering on a gut level. You should be brutally honest with yourself to avoid making a mistake. Here are some more questions to ask yourself when contemplating buying a business: 4. What is my motivation for buying this business? 5. Would it be easier to start a similar business on my own?

Why do I need a lawyer to start a business?

Apr 09, 2015 · Ask follow-up questions, such as where and when any similar cases went to trial and their results, to ensure the attorney really knows the subject matter. Two: Do you practice in the courthouse where my case is (or will be)?

What should I ask a small business attorney at my first meeting?

Jun 19, 2018 · Questions to Ask an Attorney Before Starting a Business Structuring Your Business. There are several different business structures that you can choose when you’re forming your company, including LLCs, S corporations, C corporations, partnerships and sole-proprietorships.So speak with an attorney who can explain each option for you and then listen …

What questions should I ask when buying an existing business?

15 Questions To Ask When Buying A BusinessWhy Are They Selling The Business? ... Can I Personally Add To This Business? ... How Has The Company Been Valued In The Past? ... How Is The Business' Financial Health? ... What Assets Are Included In The Sale? ... What Does The Competition Look Like? ... What Is The Future Of This Industry?More items...•Mar 19, 2021

What kind of information should you request before purchasing a business?

Buyers should request bank statements, profit and loss statements, contracts with suppliers and employees, lease agreements and tax returns from the seller as part of their due diligence, said Alan Pinck, an enrolled tax agent and owner of A.May 24, 2016

What do you need to investigate when buying a business?

What should you look for when buying a business?Perform due diligence. ... Evaluate the financials. ... Confirm the business' entity status. ... Look into legal liabilities. ... Understand the outlook for the business and its industry. ... Get a picture of operations. ... What assets are involved? ... Consider the firm's reputation.More items...•May 11, 2021

What are some good questions to ask an attorney?

In Order to Move Forward With Any Lawyer, First Ask These Ten QuestionsHow Long Have You Practiced Law? ... What Types of Cases Do You Manage? ... Who's Your Typical Client? ... How Many Similar Cases Have You Taken On? ... What Kind of Special Training or Knowledge You Have Outside Your Law Degree? ... What Are Your Fees and Costs?More items...

What is due diligence when buying a business?

When conducting due diligence, you will look at key issues of the business or product, including profits, financial risks, legal issues, and potential deal breakers. You will examine historical records and future projections.Jan 5, 2018

How do you protect yourself when buying a business?

How to Financially Protect Yourself When Buying a BusinessSubmit a Letter of Intent. ... Examine the Financial Aspects of the Business. ... Determine the Legal Status of the Business. ... Verify That Physical Assets are in Good Working Order. ... Review a Copy of the Lease. ... Contractually Reduce Unknown Risks.Jan 30, 2015

How do you avoid liabilities when buying a company?

How to Avoid Seller Liabilities When Buying a BusinessThe buyer can purchase the assets of the seller.The buyer can purchase the stock (or other equity interests) of the seller directly from the owners, orz.More items...•Aug 11, 2021

How do you do when you start a business by buying an existing business?

How to Buy an Existing Business (7 Steps)Step 1: Find a business to purchase.Step 2: Value the business.Step 3: Negotiate a purchase price.Step 4: Submit a Letter of Intent (LOI)Step 5: Complete due diligence.Step 6: Obtain financing.Close the transaction.Apr 7, 2021

How do I prepare for an attorney interview?

If you are interviewing virtually, all of these tips apply.Do your research. Lawyers are known for being good researchers. ... Be presentable and dress your best. ... Come prepared to ask questions. ... Be personable and show enthusiasm. ... Be genuine. ... Promptly send a thank-you note.Oct 28, 2020

What are some questions an attorney might ask a new client?

What Questions do Lawyers Ask Their Clients?What is your case about? A lawyer will want to know every single detail of your case. ... What do you hope to accomplish? ... How do you want us to communicate? ... Why did you choose me? ... Are you comfortable with my rates?Nov 28, 2019

What is retainer payment?

A retainer fee is an amount of money paid upfront to secure the services of a consultant, freelancer, lawyer, or other professional. A retainer fee is most commonly paid to individual third parties that have been engaged by the payer to perform a specific action on their behalf.

How to create a business name?

The name itself suggests that the owners have limited liability concerning the business’ financial obligations. The owner could be one or more, but unlike in sole proprietorship and partnership, their interest is protected. 1 Decide on an available name for your business that is according to the rules of your state. 2 Organize and file the paperwork needed that is referred to as the articles of organization that may cost about $100 to $800 depending on the state. 3 Make sure that the rights and obligations of each member of the LCC are clearly stated in the operating agreement. 4 Some states require publishing a notice of intent to form a business structure called LLC. 5 Get the necessary permits and licenses required for the formation of your business.

Why is it important to keep proprietary information?

Keeping the proprietary information within the bounds of your business is important to make sure that business’ interest is protected. This applies not only to the employees but to all people who have significant involvement with the business like the individual contractors.

What is the number one candidate for entrepreneurs who are more comfortable with working alone?

The sole proprietorship is the number one candidate for entrepreneurs who are more comfortable with working alone. From the phrase itself, it is easy to derive that the owner of the business is just one person who is most likely to be the manager as well.

Why is information technology important?

The advent of information technology makes it easier for us to access information that we need. The internet is teeming with drafts of different contracts for small businesses. Even the processes that you need to follow in trade name and trademark registration is just as click away.

Why is it important to ask the right questions?

One of the best reasons for asking the right questions is by doing that, you’ll pay exactly the right price for your new business venture and not a penny more. Asking great questions also helps minimize your risks.

Why do businesses fail?

Many businesses fail because they don’t meticulously study their competition. You need to know your competitors inside and out so you can effectively compete against them after buying a business.

What does it mean when a business owner has had it for a long time?

If the current owner has had it a long time, that might mean you’ll probably have it a long time too. Past longevity is an excellent indicator of continued success. So, if the proprietor has been in business for three decades, you’re probably inheriting a valuable asset that’ll continue to be a cash cow for you too. 3.

How much does seller financing cover?

This will indicate whether he believes in you and the small business. Seller financing usually covers 10% to 25% of the purchase price of a company. It can be used to add to a down payment.

Is running a business hard?

Running a business is damn hard, so you want to make sure you’re doing it for the right reasons. The answer could be that you see it as an excellent investment, you absolutely adore the industry, or it’s a favorite business you’ve frequented over the years.

What happens when you buy a business?

When you are buying a business, you could also be picking up undisclosed debt. This could significantly jack up what you’ll pay. That’s why it’s so important to ask this question!

How long do you have to be in standby for a business loan?

Most small business loan lenders loans insist that sellers take a standby position for about two years . This means the seller won’t receive any payments during that time. If your seller won’t finance the entire transaction, find out if he’d be willing to take a standby position so that the rest of the deal can be funded.

What is a conflict in a lawyer?

If the lawyer’s representation of prior or existing clients would limit the attorney’s ability to represent you, there is likely a conflict. For example, if you want to sue a hospital that the potential lawyer regularly represents, there would be a conflict. A conflict might also arise if the attorney you are interviewing has already been hired by ...

Why is it important to choose the right lawyer?

Choosing the right lawyer is a very important decision—whether you were in a car accident, have a medical malpractice claim, or find yourself the target of a criminal investigation. Referrals from friends or co-workers can be great, but you need to do your homework to make sure you have the right attorney for the job.

What is the importance of having a lawyer?

Getting a lawyer with the right legal background is essential, but it is also important to know whether your attorney has experience with the judges who will likely preside over your case. If yours is a criminal matter, it is important to know if your lawyer knows the local prosecutors. This courtroom experience can greatly enhance your lawyer’s ability to evaluate the likely outcomes in your case and give you advice that you can rely on.

How to feel comfortable with an attorney?

You should feel comfortable from the beginning of your attorney-client relationship that you will be able to have regular communications with your counsel. Make sure that you exchange contact information and agree on the ways that you will stay in touch.

What is contingency fee?

In cases where you are suing for monetary damages, the lawyer may represent you for a “contingency fee.”. This means the attorney gets paid a portion (typically one-third) of the amount you receive after a successful trial or settlement. Make sure you discuss expenses as well as attorney fees.

How can a lawyer save you money?

Your lawyer can often save you money by delegating routine tasks to firm employees who charge a lower hourly rate. However, your lawyer should be involved in all key aspects and decisions of your case, or should explain to you why a colleague can handle some important part of the matter just as well.

What is the process of a civil case?

In civil cases, your lawyer might propose mediation , a settlement negotiation process involving a neutral third-party. Other times, arbitration might be an option. Arbitration— using a private service to adjudicate a dispute—is a less formal, less costly, and faster way of getting a decision in some civil matters.

What are the legal ramifications of starting a business?

There are several legal ramifications of starting a business. It can lead to issues related to liability, copyright, employee rights and everything in between. So one of the first steps you should take as you work to get your business off the ground is speak with an experienced business attorney.

Who is Ben De Leon?

Ben De Leon is the President of De Leon Washburn & Ward, P.C., where he has served as general counsel to some of the fastest growing companies in Texas. As an experienced business lawyer, he recently spoke with Small Business Trends about some of the most important legal issues that new entrepreneurs should discuss when getting started.

Do you need a lawyer for a business?

Once your business starts working with vendors, suppliers, clients, or any other third parties, you’ll need written agreements in place to ensure that all parties involved know what to expect. A lawyer can help you draft specifics or at least walk you through the creation of some templates that you can use in common situations.

What is a corporate shield?

Only by establishing a corporate entity and following the necessary corporate laws and regulations do small business owners enjoy what’s commonly known as a “corporate shield” that protects their personal assets and ensures only their business assets are at play.”.

What happens if a business has an outside investor?

If your business has any outside investors, it could impact the type of corporate entity you’re able to establish for your business. Specifically, you need to be sure that the structure provides a corporate shield for your investors as well as yourself.

Financial

Are the company’s revenues rising or declining? If declining, what is needed to improve them?

Legal

Is the business involved in any ongoing lawsuits, and if so, what are the details? Has it been involved in lawsuits in the past, and if so, what was the outcome?

Market

What is the target market for the business? Is that market growing, stable or shrinking?

Assets

Does the company own any intellectual property, proprietary processes or exclusive products? If so, will the ownership rights transfer to you?

Suppliers

Who are the company’s suppliers? Are the suppliers willing to transfer the existing contracts to you when you take over the business?

Employees

How do employee wages compare to the industry average and to average wages in the local marketplace?

What questions should I ask a realtor?

You want to have a clear understanding of why they’re selling. Here are a few important questions to ask: 1 Why do you want to sell? 2 How many hours do you currently work per week? 3 What is the current cash flow? 4 Are you currently paying yourself? If so, how much and how often? 5 What are the lengths of your leases? 6 Do you have a business plan ? 7 Do you have a marketing or advertising plan ? 8 Do you have any past, current or pending lawsuits?

What do I need to buy a business?

Aside from the money you’ll need to purchase the business, you’ll also need working capital to cover expenses like payroll, inventory, utilities, rent and more. Analyze your current cash flow and determine how much money you’ll have to devote to the operation of the business. Review the accounting ledgers of the current owner and talk to him or her about their current monthly and annual costs.

Is Messenger a good business?

Messenger. As an entrepreneur, you may find yourself in a position to purchase an existing business. Many times this can be a great business opportunity that gives you a chance to build up an already-existing business or help to rehabilitate a business that might be struggling. However, as with any type of business venture, there are risks.

What to do after a business sale?

Check in with the owner and ask what he or she plans to do after the sale of the business. Ask if he or she would be willing to aid in the transition. Check in with the employees and determine what will happen to them once the sale is final. Will you be keeping all of the employees? Will you keep some and let others go? It’s also best to speak with the employees once it appears the sale will happen and answer any of their questions regarding the sale and the business’ future.

What is an inspector?

An inspector is a great resource to ask about permits, zoning rights, and other restrictions that may inhibit your plans. Having an inspector answer these questions can help you move more quickly during the building process.

Where does Erika live?

Erika currently lives in New York Metropolitan area with her spouse, daughter and cat. She is originally from Chicago and still considers herself a midwestern at heart. Erika also loves to read, write and travel (fun fact, she has visited all 50 states and more than 30 countries!).

Who is Erika from New York?

Erika is a former Affordable Housing Director for the City of New York turned full-time Land Investor. She used to help New Yorkers find affordable housing, now she helps people find affordable land around the US.

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