Becoming the owner of a business that is already established can be a rewarding experience. However, you can also end up with a deal that causes you to fall into a financial bind if you don't allow a lawyer to help with the sales contract. Find out in this article why a lawyer is needed when buying a business and how much his or her assistance might cost.
How Can a Corporate Lawyer Assist with Buying a Business?
Hiring a lawyer who specializes in corporate law to assist with taking over a business is wise because you never know if the owner used the business as collateral or not. For instance, the owner may have a lien on the business that he or she has failed to tell you about. A lawyer is helpful because he or she can find out about any liens that are present and tell you the best way to go about handling the business transaction. He or she may suggest that you require the owner to pay off the lien before you will take over the business. A lien means that the business can be taken away from you if the creditor that loaned the owner money is not paid off.
It is also important for you to know that you are making a legal business transaction. You don't want to sign a sales agreement for a business that is being sold by someone without the legal ability to do it. Your lawyer will make sure that the person you are doing business with is listed as the owner on the title to the business. The lawyer will also find out about pending lawsuits, the profitability of the business, and if there is anything you should know about that is written in fine print. He or she will make sure that you are not burdened in any kind of way after signing the sales contract.
How Much is Charged Per Hour by a Corporate Lawyer?
Your hourly rate will depend on how complicated the sales contract is with the business owner. If liens are found against the business, the lawyer will have to spend a lot of time negotiating with the owner to help you get a fair deal. The typical hourly rate charged by lawyers is usually a minimum of $90. However, a lawyer working on a complicated business transaction might charge over $500 per hour. Make an appointment with a corporate lawyer to discuss your business contract as soon as possible!