Proprietorship? Partnership? Corporation? Which is right for you? Learn about the pros and cons of each when planning your new business.
It is important to find out how the company is structured legally. The type of business structure used will affect your purchasing strategy as well as the eventual price.
Under a sole proprietorship, the business is owned in an individual capacity. The assets are held in the name of the owner, individual, or individuals who own the business. When buying a sole proprietorship, you should determine if you are buying just the assets or both the assets and liabilities.
Under a partnership, the business is owned by a group of two or more entities. This could prove more difficult; therefore it is important to see the partnership agreement to make sure that the people you are dealing with have the authority to act on behalf of the partnership.