 |
 |
Unfortunately too many new small businesses fail within a very short time, often with disastrous personal losses for the owners.
The best chance for new business success is to get the right start with professional guidance from John Harris Solicitors.
Business Structures
When setting up a new business or buying an existing business it is very important that you decide on your business structure.
You have the choice of running the business as a:
- Sole proprietor
- Partnership
- Company, or
- Trust.
John Harris Solicitors can advise you on the structure which best suits your legal needs considering your tax position, personal legal liability and availability of capital.
Buying an existing Business
Serious negotiations usually proceed with the vendor’s agent handing you a draft written contract. Do not sign the contract without first seeking legal advice from John Harris Solicitors.
If you are pressed by the agent to sign and pay a deposit, make sure the contract you sign is subject to your solicitor’s approval with a full refund of the deposit if the purchase does not go ahead.
The Contract
John Harris Solicitors will study the terms of the contract to ensure they cover the issues you should be aware of.
Amongst the various terms negotiated in a contract, John Harris Solicitors will identify what is to be included in the sale and in particular, ensure the following topics are canvassed:
- Your rights to the business name;
- The price of existing stock and the fixtures and fittings included in the sale;
- The vendor’s warranties and representations on the sales performance of the business;
- Goodwill;
- Your need for a restraint of trade on the vendor to prevent direct competition;
- Your need for tuition from the seller on running the business;
- Your access to client lists and records;
- Transfer of licences and permits required for the running of the business at that location;
- Transfer of the lease.
Goodwill
You may be asked to pay for the goodwill or, in other words, the intangible advantages built up by the business such as reputation and connections which differentiate the value of an existing business from a brand new business.
Franchising
Buying a franchise involves buying into an existing business chain with special rules regarding the purchase of stock, shop fixtures and fittings, and marketing. For this infrastructure you pay an initial entry costs and ongoing franchising fees.
When handed a franchising agreement for your signature, as with buying an existing business, it is important to seek legal advice first so negotiations proceed with you interests foremost. In particular, your John Harris Solicitors will discuss with you:
- The reputation of the franchise;
- Demand for its products;
- The franchising fees;
- Duration of the franchise;
- The operating procedures.
Setting up a business
Leasing
Your business location and the rent paid have a huge impact on your business operation. It is vital for you to realize that the terms and conditions of the lease can be negotiated.
Be sure to seek legal advice from John Harris Solicitors so that the lease document reflects your needs. Importantly, you need to be aware of how rent is increased over time; the lease’s duration; the ways in which the lease can be terminated; payment for the repairs, fixtures, fittings; and your share of rates.
Finance
To obtain finance, choosing from the myriad of loans on offer, you must understand your obligations under a loan agreement or personal guarantee.
Insurance
Worker’s compensation insurance, by law, is compulsory. It is also important to consider insurance against fire, burglary, public liability, personal disability, and loss of profits.
John Harris Solicitors will advise you on your insurance needs however you need to obtain specialist advice from your insurance broker or agent.
Operating a business
Many facets of the law come into play while operating a business. Guidance on these matters before they become an issue may save your business.
From the start, seek advice from John Harris Solicitors on legal issues arising from:
- Employer/employee relations;
- Debt recovery;
- Copyright and trade marks;
- Consumer protection and trade practices;
- Superannuation.
Legal costs
Ask John Harris Solicitors about the legal costs and the processes involved in purchasing or setting up a business.
John Harris Solicitors can also advice you on state and local government charges including business name registration fees, lease registration fees, licensing and permit fees and stamp duty on the purchase of a business.
Where to now?
The best way to get the answers you need is to speak to a solicitor, so call us on +61 7 3839 1500.
Organise an initial consultation
A face-to-face consultation gives you the opportunity to discuss your legal issues with professionals who deal with and resolve these issues on a daily basis. We provide a free half an hour initial consultation. It gives you a chance to ask any questions you may have and for a member of our team to gain background and provide an insight into the options available to you.
For more information please call us on +61 7 3839 1500 or send us an e-mail at info@jhsolicitors.com.au. We are here to help.
Please call us to find out how we can help you.