Buying an Existing Business
Buying an Existing Business
For some entrepreneurs, buying an existing business represents less of a risk than starting a new business from scratch. While the opportunity may be less risky in some aspects, you must perform due diligence to ensure that you are fully aware of the terms of the purchase.
If you buy a business, you are liable for unpaid taxes of the previous owner unless the seller provides you with a Certificate of Compliance for Letter of Good Standing issued by the Arizona Department of Revenue and possibly one or more cities. Check with the Arizona Department of Revenue to see if the seller should also provide you with a Certificate of Compliance for Letter of Good Standing issued by one or more cities.
Buying a business can be complicated and complex. It is recommended that you consult with competent legal and tax professionals in order to help review the legal and organizational documents of the business you are planning to purchase, and to help with a thorough evaluation of the financial condition of the business. (24)
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Additional Information: Arizona Business Brokers Association (AZBBA): Non-profit professional association dedicated to continuing education in the field of business transactions and providing reputable services to business sellers and buyers. Website includes articles on buying a business, as well as, searchable databases for finding an Arizona business, real estate, and/or an Arizona broker. (24) |