How To Buy A Business Name
Effective January 1, 2021, the names of corporations, limited liability companies and limited partnerships must be "distinguishable in the records" from an existing entity of the same type of record with the California Secretary of State and "may not be likely to mislead the public". Chapter 361, Statutes of 2020 (SB 522 Hertzberg).
how to buy a business name
When determining name availability, names are checked only against names of like entities registered with the California Secretary of State (e.g., a proposed corporation name is checked for availability only against other corporation names).
Buying an existing business is one way of getting your new venture up and running. Perhaps a business owner is getting ready to retire and wants to pass her shop to someone new, or you have a strong business plan that you think would reinvigorate an existing enterprise. There are many reasons why buying an existing business can be a good option, such as reduced start-up costs and time, an existing customer base, and pre-existing knowledge of how the business performs.
A business broker is a licensed professional for buying and selling businesses. Similar to a real estate broker, they can act as an intermediary between you and the business owner and help you locate a business to purchase, assess the value of the business and negotiate the purchase. Business brokers typically operate on a commission, so make sure that you find someone who you work well with and trust. Depending on the complexity of the purchase, you may also consider hiring an attorney to help you prepare an asset purchase agreement and negotiate the final terms of the transaction.
Make sure to receive and review any contracts, legal documents, and loan information that the seller has that may impact you as the new business owner. Make sure you are comfortable with the terms and assess whether you would be able to either terminate, re-negotiate or transfer ownership to yourself. This review may include items such as:
Request all financial documents, including financial statements, accounts payable/receivable, and tax returns, for the past three to five years. This will help you determine the profitability of the business if there are any outstanding tax liabilities and the actual financial net worth of the business. You may need to enter into a confidentiality agreement with the business owner to obtain this information.
If you decide to purchase the business, you will be responsible for reporting a "bulk sale" to the state Division of Taxation. A bulk sale is the sale, transfer, or assignment of an individual or company's business assets, in whole or in part. Assets subject to a bulk sale may include tangible property, such as inventory or materials, real property (land, buildings, etc.), or intangible assets, such as goodwill.
A franchise is a business relationship where the franchiser provides a license to a franchisee for a fee. This license gives the franchise assistance in organizing, training, merchandising, and management. A franchise operation may resemble a business chain with standardized branding, services, products, practices, and marketing determined and controlled by the franchiser.
You may contact the franchises listed in the disclosure statement to ask about their experience in the business and they can verify that the information provided by the franchiser accurately reflects the franchise experience. New franchise owners and those who have been in business for a few years can offer unique insights regarding financial arrangements, the start-up and ongoing assistance provided by the company, and how much profit can realistically be expected.
A franchiser can only provide some information about the sales, income, or profits of the franchised business in its disclaimer. However, upon request, franchisers are required by law to provide detailed substantiation of any earnings they claim to make. This documentation will show you what percentage of the present franchisees have had sales, profits, or income that equaled or exceeded the amount claimed.
The advice of a lawyer is the most important professional opinion to obtain before investing in a franchise. A lawyer can advise about legal rights in entering a franchise agreement, any legally binding obligations, and may be able to suggest important changes in the contract to better protect your interests. They can also advise you of any state and local laws that may affect the franchise business, if the agreement is compliant with FTC regulations, and will assist with the taxation and personal liability questions that must be considered in establishing any new business.
A domain name is what people type into a browser to find a website - similar to how you use a street address to find a building. Every website, server, or digital device that is connected to the Internet has an assigned IP address that you can use to see or visit it. This IP address is a long string of numbers and letters that would be very difficult for people to memorize, so a domain name is simply a human-friendly version of that IP address.
When you type a domain name - like www.godaddy.com or www.google.com - into your browser, the domain name system, or DNS, takes this domain and translates it into its IP address, allowing the associated website to be found.
How long your domain registration lasts can vary depending on the domain you purchase. Many domain name registrars will allow customers to register domains for 10 years at a time, but typically customers will register domains for one to three years.
Examine revenue and costs closely. For example, if you are purchasing a restaurant, look at food and beverage sales, labor costs, and food costs. Look at these numbers by month and by year and check averages. Also examine the cost of utilities, rent, insurance, and taxes. If the current owners owe a mortgage on the business, you need to include that cost in your business plan too.
Unless you are very familiar with the business for sale (you either worked there or frequented it regularly) you should find out if the location has been profitable for the existing business. Is it visible enough to bring in foot traffic? Is there enough parking to encourage business? If the space is rented, then you must speak with the landlord about rent and find out if the cost will increase.
If the business owes taxes, the buyer must include the amount in the purchase price and pay the money owed to TTX. Otherwise, the buyer becomes personally liable for the amount of taxes, interest, and penalties owed on the business.
On the Owner Name and Entity Type field, if an LLC, PLLC, or Corporation, enter the name exactly as it is filed with the Arizona Corporation Commission, including the corporate ending (Correct: Jane Doe's Party Supplies, LLC) (Incorrect: Jane Doe's Party Supplies).
Filing a trade name registers a business name for public record. A trade name is similar to a "doing business as" ("DBA") name, and is not legally required but is an acceptable business practice. A trade name does not grant exclusive rights to a business name, nor is a trade name similar to a corporation or limited liability company ("LLC"). If you want to file a corporation or LLC, you need to file with the Arizona Corporation Commission.
Filing a trademark registers a logo or slogan to be displayed on goods or services for public record. Trademarks also are referred to as service marks. These, too, are not required to be filed, but is an acceptable business practice.
Check filing guidelines and tips in our Trade Name and Trademark Handbook. Our office strongly suggests that customers perform extensive, independent research before registering a trade name. We cannot guarantee that chosen names will not conflict with existing business names.
Filing Length: Trade Names last for 5 years from the date of receipt. Trademarks last for 10 years from the date of receipt. Prior to expiration, you have up to six months to renew your trade name or trademark. If your filing is not renewed on time, your trade name or trademark can be registered by someone else.
You can tap into a few great advantages when you buy a house with an LLC. These advantages include increased privacy, limited liability, tax benefits and partnership opportunities. Buying a house with an LLC also allows you to keep your business separate from your personal life. Let's dive into the details of these advantages one by one. 041b061a72