Sole Proprietorship

The sale of any ongoing business, even a sole proprietorship, can be a complicated transaction. The purchaser and seller (and their attorneys) must consider the law of contracts, taxation, real estate, corporations, securities, and antitrust in many situations. Depending on the nature of the business sold, statutes and regulations concerning the issuance and transfer of permits, licenses, and/or franchises should be consulted. If a license or franchise is important to the business, the purchaser generally would want to make the sales Agreement contingent on such approval. Sometimes, the Purchaser will assume certain debts, liabilities, or obligations of the seller. In such a sale, it is vital that the purchaser know exactly what debts he/she is assuming.