Buying an existing limited liability company (LLC) is an excellent option for aspiring entrepreneurs who want to skip the start-up phase and focus on expanding their business operations. In this article, you will find the basic steps to buy an existing LLC in Florida.
How to Buy an Existing LLC in Florida – Full Walkthrough
Finding an Ideal Company
The first step is to find an LLC for sale. It is crucial to understand that buying a company is not as simple as signing the paperwork and transferring ownership of the business assets. You must identify whether the company is an ideal option for your case, including:
- The LLC’s business segment
- The goods or services provided by LLC
- Whether you have the skills and experience to run the company
- Your long-term business plan
- Whether the benefits involved in the transaction outweigh the liabilities
Another important aspect is how to find an LLC available for purchase. The best approach is to consult with a business acquisition attorney in Florida to use reliable strategies and filter out the best business opportunities.
Handling the Negotiation
Once you have found a promising opportunity to buy an LLC, the next step is to go through the process of negotiation. It is crucial to ensure that you are negotiating directly with the seller or an authorized agent to act on the business’s behalf.
Make sure to rely on the guidance of a seasoned business attorney to determine the real value of the company and protect your interests when negotiating the terms of the agreement.
Sellers often request a financial statement to verify whether the buyer has the necessary funds to acquire the company. A confidentiality agreement may also be part of this process, especially considering the number of sensitive documents involved.
Buying an LLC is a major transaction that can heavily affect both the seller and the buyer. Hence, it is essential to avoid any unexpected issues and proceed with a full business review to look through the company in its entirety.
The due diligence process includes an extensive list of documents that ranges from financial sheets (e.g., revenues, expenses, payroll, etc.) to debts, mortgages, loans, and lease agreements.
You must also double-check the company’s formation documents and review the LLC’s operating agreement. The assistance of an expert attorney may not be taken for granted during this phase.
Closing the Transaction
Ensuring a smooth closing for a business purchase transaction is a complex task, considering there are several subsets within this unique phase. The most important legal instrument of the transaction is signed during this phase, which is the purchase agreement.
Additionally, the closing requires a list of other documents that include term sheets, memorandums, affidavits, and a massive amount of paperwork. The buyer must also make a deposit in an escrow account, which must be under the control of a trustworthy agent.
Working with a licensed attorney as a closing agent is a good strategy, as it guarantees each document will be properly reviewed and both parties will understand their rights and obligations under the contract.
If necessary, a Florida attorney may also fine-tune some of the terms and conditions of the transaction, efficiently amending documents and arranging specific details.
Buying an Existing LLC in Florida – Immediately Seek Expert Legal Guidance
Waste no time with uncertainty. Contact Attorney Romy B. Jurado today by calling (305) 921-0976 or emailing Romy@juradolawfirm.com for an individual consultation.