A business is not just the sale or purchase of a name, but is the sum of many parts, including stock, plant and equipment, contracts, leases or other property interests, goodwill as it relates to your customer base, debts, employee entitlements (eg. holiday pay and long service leave) and other liabilities.

If you are purchasing a business, you need to be sure of exactly what you are acquiring and how you can avoid the seller not giving you all that you bargained for.

For example, if you are paying for goodwill, then you will need advice as to restrictions on the seller setting up a competing business immediately after the purchase has been completed.

On the other hand, if you are selling, you need to maximise the value of your business, and there will be taxation considerations as to the value of plant equipment, and possible capital gains tax.

You must also consider whether the business is being purchased as a “going concern”, and in that instance, whether payment of GST is required, or you are in fact entitled to an input tax credit.

There are other considerations if you are buying or selling a franchise.

We have many years of experience in the Townsville and Ingham districts, and offer practical legal advice based on a local knowledge of the area.

We are able to take your instructions, and then meet with you and your accountant to discuss the best way forward for you, including any taxation implications.

You will then be fully informed prior to signing any documents.

Please contact us for more information.