Russel Cohen IB

Russell Cohen

Russell Cohen
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Importance Of Terms When Buying Or Selling A Business In South Florida

January 2012

There are many factors to consider when buying a business or selling a business in South Florida. If you are a sole proprietor (an individual who is the sole owner of a business that is neither a partnership nor a company) can decide to close whenever you please. If you are a business with a partnership, limited liability company (a company whose owners and managers enjoy limited liability and some tax benefits, but avoid restrictions associated with S corporation), or a corporation you and your partners have to dissolve the entity according to your articles of organization.

If you are a Limited Liability Company or corporation and fail to legally dissolve your part you will be liable for taxes and filings. If your business is operating as a sole proprietorship or partnership you may not be required to do this, but it is still a good idea.

To protect your reputation and finances, it is best that you cancel all of your licenses and permits that you will no longer need. A professional business broker can help you with the entire process.

Make sure that all final paychecks are paid to employees by their last day of work. The Worker Adjustment and Retraining Notification Act protects workers, their families, and communities and requires employers with 100 or more employees provide at least 69 calendar days advance written notice of your closing.

If you have employees, you must obligate your payroll tax responsibility or you will risk personal liability. Inform the federal tax agencies that you are closing you business and you will cease to file unemployment returns and an employer’s quarterly tax form.

You should also contact any creditors or lenders to let them know you are closing your business and settle any remaining debt. If you cannot pay off your debts you may have to file bankruptcy. You also want to close out your business bank accounts and cancel all of your businesses credit cards.

You might want to start preparing your current inventory for sale. What inventory you have from your business is a part of your businesses assets. This should be included with the total value of your business.

When closing your business it is probably best that you seek expert advice from lawyers, accountants, business brokers, and the IRS. This is a delicate multi-step process so it best that you do this carefully and wisely.

For additional inforamtion or to contact us to assist you selling your business click on Selling a Business South Florida

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