Known for its sunny weather and various tax advantages, Florida has had an influx of people since the pandemic, resulting in a boom in the economy and the job market.

As supported by statistics, there is a positive outlook in terms of GDP and population growth in Florida. Although many potential entrepreneurs are searching for business opportunities, purchasing a business is not as simple as changing owners and signing paperwork. 

Keep reading to find out why you should hire an attorney when purchasing a business in Florida.

Different Types of Businesses and Sales

There are different types of business sales in Florida, including: 

  • Sales involving the total of the company’s assets. 
  • Sales involving the company as a legal entity.

In the first case, the buyer agrees to purchase the company’s assets.

In the second case, the seller transfers the ownership of the legal entity to another individual(s). If an individual owns a limited liability company (LLC), for example, it can be sold in its entirety or as a share of the business. 

In most cases, buyers opt for purchasing assets instead of business entities because they feel more secure about potential liabilities. 

Ideally, you should always hire an expert business attorney to analyze your case and assess which purchasing strategy is best. 

Why You Need to Hire an Attorney

Although some entrepreneurs consider hiring an expert business attorney unnecessary, it is important to note that making a simple mistake during a business transaction can lead to court battles and costly litigations

During a business transaction, there are several different measures that a business lawyer can advise in, including: 

  • Utilizing professional experience to find “loopholes” and defects in contracts.
  • Drafting enforceable legal agreements to avoid informalities. 
  • Reviewing all contracts, including the terms and provisions. 
  • Ensuring compliance with state and federal laws.
  • Reviewing fine print on legal agreements before signing.  
  • Utilizing local networking and knowledge to help during negotiations.
  • Assessing the purchase of adequate liability insurance.
  • Reinforcing the roles and duties of both parties during the negotiations.
  • Assisting with handling the liabilities regarding specific business structures.
  • Tax obligations, associated expenses, special documentation, licenses, permits, etc. 
  • Foreseeing potential issues and protecting clients from legal exposure. 
  • Contacting officials in the state and filing the required forms with different agencies. 
  • Knowing the fundamental factors to look out for when drafting and negotiating the terms in a contract.

Why You Need to Hire an Attorney – Benefits for Sellers

On occasion, entrepreneurs will decide to move on and sell their company, but it is essential to work with an expert business attorney to ensure that it does not end up in the wrong hands. 

Since selling a business is much more complicated than just putting up a sign, there are several factors to consider:

  • The total value of the company.
  • Structuring, customer goodwill, and the balance between tangible and intangible assets. 
  • Creating a functioning entity. 

Because not all companies are built for succession, it is essential to hire an expert business attorney to create a functioning entity that will not break down when the original owners leave.

The method utilized to determine the business’s value.

Although the process can be complicated and demanding, the guidance of an experienced business attorney will ensure a fair deal for both parties involved. 

Are You Purchasing a Business in Florida? We Can Help You

If you are interested in buying or selling a business in the Sunshine State, you need the guidance and assistance of qualified and experienced business attorneys

At Jurado & Associates, P.A., we can help you navigate the complex variables. We have the knowledge and expertise to help you make the best decisions for your business.

Contact us today by phone at (305) 921-0976, by email at [email protected], or by WhatsApp at +1 (305) 921-0976.