4. Review the lease to determine the potential costs of the rental premises, keeping in mind that many leases are “net to the landlord” meaning that any costs associated with the building will eventually make its way back to the tenant as rent.
5. Determine whether or not you will purchase the business by using an incorporated company, rather than running the business under your personal name or as a proprietorship, to protect your personal assets from your company’s creditors, or from personal liability, depending on the risk level of the business and other factors.
6. Always consider whether or not the business complies with the relevant municipal authority’s permits and by-laws, health authority regulations, and fire department rules.
7. Ensure that the business assets that you are purportedly purchasing are actually owned by the seller, in which the seller has the actual authority to sell the business asset, such as vending machines, leased equipment, or equipment purchased with a loan.
8. Insist that the seller of a business you are wanting to buy agrees to not purchase or operate a similar competing business within a certain number of years or a certain proximity away from your new business.
Business and Commercial Law
Thinking of starting your own business? *Wondering if you need to incorporate a company or not?