“There are many legal issues to consider whether you are either buying or selling a business or leases”
Establishing, Buying or Selling a Business
Research and planning are required when establishing or buying a business and care is also needed when selling one.
You should ensure you investigate the nature of the premises and the suitability and terms of any lease to be entered into.
Other Issues to consider:
- The structure of the business whether a sole trader, partnership, company or trust;
- The appropriateness of the business name;
- The financing set up; and
- Funding options.
You should ensure you carry out a proper study of the prospects of the business you plan to establish or buy and consult a properly qualified Accountant to assist you with a business plan and setting up of the new business and investigation of the books of the business you propose to buy.
An Accountant will also help you with advice on your bookkeeping needs if you are new to business and requirements for taxation reporting.
Any contract to buy should be subject to a due diligence investigation entitling you to ensure all aspects of the proposed business including its past performance are satisfactory.
Commercial Lease & Retail Shop Lease + disclosure statement
It is important that landlords and tenants understand the relationship they are entering and the obligations and rights they have when leasing commercial property.
Commercial leases and retail leases are legally binding contracts between the owner of the property and the business owner and are binding and enforceable. It may be a costly mistake if you make a poor leasing decision. A lease is usually central to the value, goodwill and future sale of a business as well.
In Queensland, the regulation of retail is by the Retail Shop Leases Act 1994 (Qld) (the ‘Act’). The Act applies (broadly and subject to some exclusions), to a business premises located in a retail shopping centre and / or premises that are used wholly or predominantly for conducting a retail business.
It is important to seek advice from a lawyer who understands the Retail Shop Leasing Act to ensure that you understand the benefits or potential pitfalls as well as obligations under a Retail Shop Lease. Landlords and tenants to a retail leasing transaction also have specific disclosure obligations and during leasing negotiations certain information must be exchanged and there are consequences if landlord disclosure requirements are not met.
Looking for an experienced leasing lawyer? Terry Anderssen Lawyers can assist you with reviewing any lease, including both retail and commercial leases.