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James Millar
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hawamahal, post: 246361, member: 92062 wrote:
Hi All

My first post here. Up to now I have been reading this wonderful forum. Just need some help getting my head around the process.
The situation is that I am buying an existing small business which has been in existence for a long time i.e. > 20 years. The business name is important for me. I have at the moment registered a new company in my name. I have the following questions which hopefully other members will sure be able to answer.

1. In the sale process I will be buying the company or the business name/assets of the business. I have been told that buying the company is a risky, so I need to transfer the business name to my new company and assets of the business.

2. The company currently have some licences (Fair trading NSW) which are registered in their name. I have to reapply for those licences, but the new licence will be in my new company name rather than the business name. Since the business name is important to me what is the way out here.

3. How does the transfer of other things go about i.e. Domain name, their email addresses etc.

Thanks in advance.

For small businesses an “asset purchase” is generally safer than a completely “company equity purchase”. However the administrative challenge with an asset purchase is that you will have to go through the process of changing or even re-applying for some things for the new company. The business names, domains can all be transferred. Its more commonly the industry licenses that are harder to transfer because specialist qualifications need to be re-evaluated for each entity (as an example). So for example in our industry, if you sold an accounting practice the new owner would need to apply for their own tax agent registration and ASIC agent registration because they are non transferable.

Do you have an accountant and lawyer helping you? If not – get them.

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Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900