Do you own a business? Would you like to transfer it to someone? Or would you like to buy a business? Make sure to make an agreement and put the terms of the transaction in writing. You should not rely on oral promises and words. Especially when the purchase price is paid in installments, there are serious risks that both parties face.
If things do not go as expected and you don't have a written agreement, litigation would cost seriously more. By signing a written agreement the parties would know and understand their responsibilities and rights, which would eliminate problems in the future. Moreover, some of the transfer procedures require advance notifications to the State. If the State is not notified; there could be serious financial sanctions for the parties involved.
When payments are made in installments, you should get a guaranty. If this is not possible, the agreement should set forth what to do if buyer falls in default. The important point to consider is that each step should sync with the transfer process. Therefore, while initiating talks for a possible business transfer, these particular matters should be discussed and clarified. If you are transferring company stocks, you should also inspect company's internal records and documents prepared since its inception. For more detail information, please call us at 212-904-1506.