Purchasing the assets of an existing business can be a quick way to start a business or grow your existing business. Buying an existing business gets you the assets and customers and brand of that business, but can also expose you to that business’s liabilities. The purchased assets could be subject to liens, tax liabilities that can come to haunt you years later, and trade creditors can come after you for previous unpaid bills.
Instead of purchasing the assets directly, you could purchase them indirectly by purchasing the shares of the corporation that own the assets. Since you are purchasing the entity that own the assets, all the liabilities and obligations of that corporation will become your concern. These liabilities may include liabilities for past income taxes or HST or payroll withholdings, past issues with employees, and product liability.
Buying assets or shares each have their own risks and benefits. Having experienced legal counsel can be invaluable in these situations. With over 20 years of experience in corporate and business law, Dimitry Beluli can assist you in in expanding your business through mergers and acquisitions of other businesses as well as assist you in restructuring your business assets and corporation in order to facilitate the sale of your business or for tax planning or other matters.
Dimitry Beluli can assist you with:
• Purchasing the assets of a business
• Purchasing the shares of another company
• Merging your corporations together
• Splitting your business apart into two or more corporations
• Restructuring your corporation