When approaching a significant purchase of commercial real estate, it is best to be fully prepared for what may be both an exciting and complex process. A 59-acre piece of land was recently sold for $3 million in Baton Rouge. The land was purchased by a construction company that plans to build an asphalt plant on the property. A business partnership originally had the option to purchase the land for use as part of a natural gas liquefaction and fueling facility but the option to purchase lapsed earlier this year. The construction company that purchased the land specializes in paving, civil construction and industrial construction.
Selecting a business form for your new company is important business. Sometimes, when the business entity decision is taken lightly, it can result in unwanted consequences. The selection of a business form should be in line with your plans for the business, both present and future.
Buying a business requires careful research, due diligence and the evaluation of a number of factors and opportunities. First, it is important to identify the best business for your business to purchase and then begin to conduct due diligence.
Last week's blog discussed why selecting the best business form for an individual business start-up is important. This week's blog focuses on a closer look at the different entity form options that may be available to business owners and new entrepreneurs. Entity form options can include sole proprietorships, partnerships, corporations, s corporations and limited liability companies. Each business type has important tax consequences and potential liability concerns to consider.