Are you thinking about starting your own business or purchasing an existing business?
If you are, there are a number of important legal steps you need to take to make sure that you are adequately prepared.
Below are some of the things you need to do in preparation for your new venture:
- Establish a Business Entity
Are you going to trade as a sole trader, meaning that you are personally liable for the debts of the business, or are you going to set up another entity, like a company or a partnership where you can share liability? - Are you going into business with someone else?
If you are, you need to make sure you have a Partnership Agreement prepared by a Lawyer; or if you are running your business through a company, then you will need a Shareholder Agreement. A Shareholder Agreement sets out your plans for the day to day management and succession of your business. - Have you picked a memorable business name?
You need to make sure you register your business name via the ASIC website to make sure that nobody else can legally operate under your name. You should also registrar at Domain Name, even if you don’t plan to start a website straight away, to make sure no one else does.
If you are purchasing an existing business, then then are a number of things you need to go through as part of your due diligence process:
- Financial Records: Have your Accountant look over the books. It is not enough to take the business at face value and assume that it is making money.
- Inclusions: You need to ensure that you have purchased everything from the business name to the telephone number, social media pages, fax number, email addresses, and any equipment you need to run the business.
- Creditors: You need to make sure that the business does not have any nasty debts that may affect the transaction. You can do this by performing a search of the Personal Property Securities Registrar.
If you need some advice about any of the above, contact the team at Complete Legal & Conveyancing.
