I am thinking of taking over an existing restaurant. i will be taking over the name. i will just be leasing the property, how can i find out if the buisness itself has any liens and am i responsible for it?
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Anonymous
ANSWERS: 2
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You need to tread VERY lightly here and very smart of you to question any liens because you will be assuming ALL of the liabilities of the restaurant. have all the payroll taxes been paid to date? what about the sales taxes, if any? And you could check with some of the vendors to make sure they have been paid in full. I'd ask the current owner for a balance sheet and if it's done correctly will show any outstanding liabilities. Take the balance sheet to a CPA to review for 'reasonableness' of figures on it.
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Put in your contract that any and all leins, debts, and obligations of "Current Owners name" have beeen satisfied. Be sure you have an attorney draw up your contract and attend the closing or whatever you wish to call it ...
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