Small Business Attorney in Chicago – Why You Need One!
In the past, I have written articles on issues such as buying a business, selling a business, taxes, and corporate structuring. Given the current state of the economy, specifically in Chicago, there are even more reasons why you want an experienced business and tax attorney involved in your small business sale or purchase.
Common Risks When Buying or Selling a Business
941 payroll taxes, sales tax fines, and other tax liens are now common problems associated with the sale and purchase of a business.
When you buy an existing business, you may also be the new owner of a payroll tax lien!
These liens are penalized at 200%, and there is no way of getting rid of this liability if you have agreed to assume all of the liabilities of the business that you are buying.
Licensing Problems and Legal Pitfalls
Licensing agreements are also at the heart of much controversy.
- For example, if you are purchasing an existing business that has had its liquor license or lottery license revoked for nonpayment of sales tax:
- You will start your business by buying yourself an expensive lawsuit
- Once a license is revoked, getting it back is much more difficult than applying for one in the first place
Why Legal Representation Matters
These are common issues that many of our business buyers face.
Our ability to provide our clients with top-notch due diligence has saved our clients thousands of dollars in litigation costs and from personal bankruptcy.
Contact the Ansari Tax Law Firm for more information on safely buying a business and protecting yourself from personal liability.
Frequently Asked Questions
What does a small business attorney in Chicago help with?
A small business attorney in Chicago helps clients with legal matters such as buying or selling a business, handling tax issues, reviewing contracts, and ensuring compliance with licensing and regulatory requirements. Their expertise helps protect business owners from legal pitfalls that can lead to lawsuits or financial loss.
Why is it risky to buy a business without legal representation?
Buying a business without legal representation is risky because you could unknowingly assume liabilities such as unpaid taxes, liens, or revoked licenses. These issues can result in costly penalties and lawsuits, which an experienced attorney can help identify and avoid through thorough due diligence.
What are common legal issues when buying or selling a business?
Common legal issues include outstanding payroll tax liens, sales tax penalties, and problems with business licenses such as liquor or lottery licenses. If these are not identified and addressed, they can expose the buyer to significant financial and legal consequences after the transaction.
How can a small business attorney protect me from liabilities?
A small business attorney conducts detailed due diligence to uncover hidden liabilities, ensures proper contract language to limit your exposure, and advises on structuring the transaction to protect your personal and business assets from unforeseen claims.
When should I contact a business attorney in the buying or selling process?
You should contact a business attorney at the very start of the buying or selling process. Early legal guidance can help you avoid common mistakes, negotiate better terms, and ensure all risks are properly addressed before you commit to the transaction.