If you are starting up a new business or buying an existing business, you may need a lawyer as much as at any other time in your life. Here is some advice from Franklin Law:
Whether you are planning to be self-employed or to employ people or control a business, there are areas of law you need to know something about.
Some of the things to take into consideration include:
- Will the business be a good investment?
- Will it generate a reasonable income?
- If it is an existing business, what income has it generated in the past?
- Why is it being sold (i.e. is the lease expiring, is business declining, is there a tough new competitor on the scene, are local council activities affecting the business)?
- Do the premises comply with zoning, building and health code requirements?
- Is any rezoning or redevelopment planned in the area?
- What health and safety requirements are there?
- Will you own the business as a sole trader, in partnership, as limited liability company or as a trading trust?
- Will your credit rating satisfy the landlord of any leases being transferred to you (as the landlord’s consent is required)?
- What are the lease conditions?
- Does the business involve a franchise arrangement?
- What will your tax liabilities be?
- Will you agree to take on all existing employees?
Why use a Lawyer?
When you buy an existing business, you must be sure what you will own and what you will lease. Here are some examples of matters on which your lawyer can assist you:
- Premises – including lease details, suitability of lease terms and extent of liability.
- Occupational safety and health – controlling work places, factories, safety and related matters (including safety of premises, staff and all people who may be associated with your business).
- Employment Law – the employment contracts that you enter into can have a profound effect on the motivation and performance of your staff. It would be hard to over-estimate the contribution the lawyers can make to good staff documentation and relationships and to lessening the loss if things go wrong.
- Customer and supplier relationships – protecting your business by having appropriate terms of trade, effective title retention clauses and contractually binding provisions for the payment of interest. You need effective supply contracts.
- Intellectual property law – including patents, trademarks, franchising and other rights, trade secrets and employment controls. You should protect the value of the “intellectual property” of your business.
- Taxation including GST – especially important when buying or selling a business.
- Disputes – including the collection of debts and effective dispute resolution.
Franklin Law
09 237 0226
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