Commercial Law refers to the laws that govern commerce and trade and the businesses and individuals who engage in these activities. It covers many areas including Buying and Selling a Business, Retail Tenancies, Bankruptcy, Payroll Tax, Contracts Review Act, Guarantor, Capital Gains Tax and GST. Find out more by clicking on each section below.
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Buying and Selling a Business
Higgins Lawyers will prepare Contracts for the sale of business as well as provide advice relating to the sale. For a purchase of a business we will on your behalf make all the required enquiries regarding the Contract as well as negotiating the terms of the Contract.
Before you buy or sell a business you need to consider many aspects beyond the purchase/sale price. Some of these concerns include:
- Is a stocktake required? Who will conduct it, and when?
- Is there any of restraint of trade?
- What will happen to existing staff, their superannuation, leave and WorkCover requirements?
- What sort of insurance do you already have in place? What does it cover; fixtures and fittings or the building? Do you require additional insurance?
- Are you aware of the Compliance issues at a local, state, and federal government levels?
- Do you require assignment, transfer or preparation of a new lease?
- The transfer of the business name also needs to include phone numbers and/or online properties such as websites or social media pages.
- Does purchasing the business require transfers or Licences such as liquor licences, council permits or motor vehicle licences?
- How will you finance the purchase? Options include taking out a business loan, borrowing against other property, debenture, and bill of sale.
- Are there GST implications to consider?
We do not provide financial advice as to the viability of the business – this advice should be obtained by you from your accountant.
The Department of Fair Trading provides extensive information on conveyancing for a multitude of different businesses. For more information fairtrading.nsw.gov.au
Legal advice is always recommended.
Bankruptcy provides protection from further legal action by creditors.
This is a State tax and paid by employers on their employees remuneration, whether in cash or otherwise. The rate in NSW is 6% and applies to all employers with a payroll in excess of $600,000 per annum.
Contracts Review Act
An application for relief under this Act must be made:
- within two years of the contract date.
- within the three months before, or two years after the time for performance of the contract; or
- during the pendency of a maintainable proceedings arising out of the contract
A guarantor must repay the amount lent to the borrower plus interest and enforcement costs if the borrower fails to do so.
Capital Gains Tax
Only assets owned prior to the 19th September 1985 are exempt from this tax in most cases.
A 10% tax on goods and services.
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