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Buying a child daycare, llc. Besides the purchase contract and lease agreement, what else should my lawyer be doing?

Brooklyn, NY |

Checking liens? Violations? Outstanding debts? Transferring the LLC to my name? I want the transition to go smoothly with no interruptions. Moreover, I want to make sure I'm protected from any liabilities from the past owner. What should my legal concerns be when buying a small business?

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Attorney answers 2


Sounds like you are already represented so it would not be proper to answer this question in a forum such as this. Have this conversation with your attorney.

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Buying the LLC does not protect you from prior owners liabilities.....don't buy the LLC but instead have e LLC sell it's business assets to a newly formed LLc you create to be the buyer....this will avoid liabilities as you are buying assets free and clear. Make seller give you representations and warranties as well as indemnification for any claims arising prior to closing of the deal. Ask for a noncompete from the LLC and it's owner for 5 years. Minimize down payment and pay purchase price over time tied to expectation of continued revenues......and about another 50 items I can think of that are way beyond the scope of Avvo given you already have an attorney.

My answer is not intended to be giving legal advice and this topic can be a complex area where the advice of a licensed attorney in your State should be obtained. Please click "helpful" or "best answer" if my answer added any value or add a "comment" if you have more info for me to help you get a better answer.