Buying a Business in USA
USA related forum posts
hey there, me and the husband are planning to move our film collectables store to the usa (maybe even keep our existing one in the uk too) but we're unsure if this is such a good idea now. it is such a hard decision when all the advice we're getting is so mixed. some people seem optimistic for business in the coming year, others not. &l
Total Posts: 4 Last post by jonekane
Hi, I would be interested in knowing whether it would be a good move to expand my cleaning company to the US. How would you go about doing this?
Total Posts: 2 Last post by vroomr513
Buying a Business in the United States
Buying a business in the United States needs exactly the same research as buying a business anywhere in the world, but of course there are differences in the way the research should be done. If you are looking to invest in an existing business opportunity in the US then certain fundamental questions need to be asked:
- What sort of business suits my financial needs?
- What sort of business suits my skill set?
- What sort of business can I afford to purchase?
- Where would I like my business to be located?
So far, nothing unusual. But if you are a foreigner looking to buy a business in the United States, once you have answered these fundamental questions, the serious work begins.
An obvious first question has to be:
Am I allowed to buy a business in the United States?
Assuming you are non resident in the US it will be worth contacting the Immigration department to find out.
Laws change constantly as to who is allowed to buy a business in the USA, and this initial research will possibly save an awful lot of heartache and possibly expense. US Visa agencies specialise in advising on how to obtain the right visa to buy a business there, and in some cases, the act of buying a business in the USA can be the determining factor as to whether or not you obtain a US visa. This gets even more complicated, as visa applications may depend on the type of business opportunity you are looking to invest in, with the criteria changing according to the needs of the US economy. For example, buying a business that employs lots of people may be looked upon more favourably that if you were looking to but what Americans call a Mom & Pop business. Again, sensible to consult a specialist.
There are several publications that advertise business opportunities on the market, listing familiar terms such as turnover, profit, years trading and reasons for sale.
For the first time business buyer these terms can seems complicated ,or meaningless. Add to that that business tax laws can vary from state to state, and it becomes clear again that professional help should be sought when buying a business in the USA. A business broker will not only understand the financial information, but will have a feel for the local market. They will also be able to point you in the direction of the other service providers you will need to engage when you are looking for business for sale. They may also be aware of businesses that are for sale that are not yet officially on the market or advertised in the press or online. Forming an LLC in California is easy and affordable.
A business broker will be keen to make the sale and should be more than happy to make recommendations of organisations that can help with finance to buy a business in the US, loans to buy a business in the US, as well as the legalities involved in buying a business in the USA. If you need to buy or rent a house or apartment ,they will also have contacts that might be useful.
As with any business transaction, legal contracts will have to be drawn up. Lawyers specialising in helping people to buy and sell businesses should be sought. A good lawyer ( as well as a good accountant!) will soon become your closest friend.
The reality is that you will need some specialist advice from an organisation that understands business, and that importantly understand the local market - the true value of businesses for sale, and their potential. Given that the economy in the United States differs from city to city, as well as from state to state, it will also be sensible who has local knowledge.