Did you find a business that you are ready to invest in and take over ownership? Before signing a sales agreement, you may want to seek services from a corporate lawyer to make sure you are not getting a bad deal. Find out below how a lawyer can be helpful when purchasing a business, as well as what he or she may charge to assist you.
Why Should a Lawyer Be Hired Before Buying a Business?
One of the worst things that can happen when buying a business is that there is a lien in place without your knowledge. A lien means that the previous owner did not pay a debt to a creditor, and now the creditor can legally take possession of the business if the debt is left unpaid. You can end up having to pay off the lien in order to keep the business. A lawyer can investigate liens against the company in advance, as well as pursue the owner to pay it off if one if found before you make the purchase.
A lawyer can also check the name of the title owner to the company that you are buying. If you don't make sure you are purchasing the establishment from the rightful owner, you can end up spending money on something that isn't yours. A lawyer can also help you legally transfer the title to your name during the sales process.
Other services that a corporate lawyer can assist you with include:
- Investigating lawsuits against a business
- How profitable a business is expected to be
- Making sure the previous owner has no rights
- Explaining the fine print of the sales agreement
- Transferring ownership of the business slogan and logo
What is the Hourly Rate of a Corporate Lawyer?
The overall price for the services of a corporate lawyer will vary, as it depends on the complexity of the task. The lawyer can charge a flat rate, but is likely to charge by the hour if you want him or her to assist throughout the entire sales process. It is typical for lawyer to charge an hourly rate of at least $90 or more. The highest end of the scale can average over $500.
Buying a business can be a good thing when you know what you are getting into. Allow a corporate lawyer to make sure you are signing a sales agreement that won't cause any stress later!