If you own a small business in Massachusetts and are looking to sell it, it’s important to be thorough in the legal transfer of that business. Business transfers can actually be quite complex, even for a small business. Unless you are familiar with the many intricacies, you are likely to miss a critical step. Here are some things that you should keep in mind when selling a small business in Massachusetts.
Most small business accounts are somehow tied to the principal(s) of that business. Think about when you first established the business. Do you recall being asked for your personal social security number in addition to the business tax ID number? If you fail to properly transfer these accounts, you may still remain liable for debts and other obligations even after the sale.
The individual or entity looking to purchase your business will perform some due diligence. They will require access to detailed information about your customers, sales, debts, processes, assets, etc. What happens if the deal falls through? Is the information gained during the due diligence process likely to hurt your business and expose you to risks? Drafting a confidentiality agreement to protect your rights and maintain your privacy is extremely important during the process of selling a small business in Massachusetts.
Drafting Legal Documents
Lawsuits are often fought and won or lost based on the language within executed contracts. Thus, we can’t stress enough the importance of obtaining legal counsel when selling a business in Massachusetts. Hire an independent attorney to look after your legal rights in the review and negotiation of business sale contracts.
Small Business Legal Services
Martino Law Group provides a wide range of services to small business owners in Massachusetts. Contact us to learn more about our services and how we can assist with your small business needs. We are licensed in Massachusetts and New Hampshire can help promote and protect your best interests.