Q: I am buying a pre-existing business - do I need to form my own company to do that?
A:
There are 2 primary ways to buy an existing business:
(a) Stock Purchase
(b) Asset Purchase
These are very different ways of buying. In a Stock Purchase you step into the shoes of the existing business, including any negative history or events. In an Asset Purchase you are buying the elements of the business but not the history of the business. In short, an Asset Purchase is safer, but may exclude certain valuable parts of the business.
In any case, you do not need to form a new business entity in order to accomplish your goal, although it may well be advisable to form one. To learn more, please consult with a knowledgeable Attorney in your area.
I hope this information has been helpful. Best of luck.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
