Tax Tips For Entrepreneurs – 10. Consider Purchasing An Existing Business
The failure rate among start-up businesses is very high. Instead of starting a new business, another option is to purchase an existing business. Although this may be more expensive initially, the success of the business is already proven, and the investment may be less risky in the long term. The aim of any business is to succeed commercially. It is also easier to attract finance for an established business than for a new start-up.
When buying an existing business, the purchaser can either buy the shares in the business (if the business is a limited company) or the assets in the business. Where the business is an unincorporated business it will be the assets that are bought.
Professional advice should be sought prior to the acquisition of an existing business to ensure that the sale is structured in a tax-efficient manner and all legal requirements are met.