Business Law on The Central Coast
Starting or buying an existing business can be both exciting and challenging. Linda and her staff are versed in such matters and can assist you with the purchase or sale of a business entity.
Preparing contracts, engaging searches, booking settlement and ensuring all details are clearly explained to the client are part of the professional approach at Linda Emery & Associates.
The complex nature of commercial leases means it is very important for all parties to be fully aware of the implications. Ensure your lease fully documents your business requirements.
Debt recovery can sometimes be thought of as ‘too hard’. What steps are necessary to pursue an outstanding invoice? Let Linda assist you to lodge a Statement of Liquidated Claim. Telephone our office for assistance.
Leases for Business
Most leases make the lessee responsible for keeping the premises and fittings in good repair and many require you to pay all or a proportion of costs such as rates, maintenance and so on.
In some cases the rent may vary according to a fixed percentage or some formula such as the CPI or the turnover. Remember that your occupancy may be subject to the NSW Retail Leases Act 1994 and the conditions under which you occupy the premises must be contained in the lease you sign. The lease ought to allow you to make any alterations necessary to your business and, if the business is in a shopping centre, you would be wise to have a restriction on other businesses which may compete with yours.
Personal Property Security Act
The Personal Property Security Act (PPSA) replaced a number of existing registers. This included the ASIC Register of Charges and the Register of Encumbered Vehicles.
What assets can be registered?
The PPSA applies to debentures, chattel mortgages, retention of title, hire purchase, leases exceeding one year, assignment of debt, consignments and security trust deeds.
Security over an asset should be registered on the Personal Property Securities Register. Failure to register an interest in an asset may result in you or your business having no claim over the asset in an insolvency scenario.
The PPSA also provides for the determination of priority between multiple security interests in the same personal property. Telephone Linda Emery & Associates for an appointment on 02 4323 4766.
Selling or Buying a Business Entity
The types of business structures you may need to consider when buying or selling a business include:
Franchising is a type of business ownership which allows an individual, partnership or company to operate an independent business under the banner of an already established business. A franchise agreement is a document outlining the rights and obligations of both the franchisor and the franchisee. Before entering into a franchise you should check the reputation, track record and financial stability of the franchisor very carefully. Also, find out what advertising budget and back up services the franchisor offers.
Goodwill is a way of describing a special asset of a business for which a purchaser can be called upon to pay. It arises for a variety of reasons, for example, the location of the premises, the quality of the products sold, the performance of the staff, the absence of competition,etc. It is generally reflected in earning power and should be thoroughly assessed by your accountant.
When buying a business you need to consider whether the purchase of business is subject to a lease and whether the lease is to be transferred or a new lease granted. You need expert legal advise on the purchase of business to protect your interests in this transaction. Linda Emery Solicitor has expertise in business law to advise you.
Linda Emery is a Gosford Lawyer with over 30 years of experience. As a local Gosford Lawyer she is friendly, approachable and professional.