Congratulations! You have either purchased a business or sold your business. Now what? There are important steps to take in the days and weeks immediately after the closing. Most important are clear and concise communications to employees and customers. Ideally, the communications should be planned and agreed to well before closing. Depending upon the size of the business, a public announcement may also be appropriate, and the content of that should also be discussed before closing. Secondly, notices and filings with government agencies may be required. In Maryland, a notification is sent to the State’s personal property tax department to assure that the State registers the transaction on its records and changes the taxpayer responsible for post-closing personal property tax to the purchaser. Also in Maryland, a bulk sales tax return is required to be filed within the month after the closing, on which is reported and paid the sales tax owed on the transfer of certain assets. Last, vendor contracts should be reviewed, and either transferred into the purchaser’s name, or terminated by the seller and new contracts entered into by the purchaser. All of the above steps will allow for a smooth transition of the business and for the financial obligations of the seller and the purchaser to be adjusted correctly as of the closing date.
ABOUT GLENN D. SOLOMON
Glenn D. Solomon Esq., is a principal at the law firm of Offit Kurman and has provided counsel to businesses and business owners for more than twenty-five years, with extensive experience in the purchase and sale of businesses, structuring ownership agreements, and advising companies in financial distress.
ABOUT OFFIT KURMAN
Offit Kurman is one of the fastest-growing, full-service law firms in the Mid-Atlantic region. With over 130 attorneys offering a comprehensive range of services in virtually every legal category, the firm is well positioned to meet the needs of dynamic businesses and the people who own and operate them. Our ten offices serve individual and corporate clients in the Maryland, Delaware, New Jersey, and Northern Virginia markets, as well as the Washington DC, Baltimore, Philadelphia, and New York City metropolitan areas. At Offit Kurman, we are our clients’ most trusted legal advisors, professionals who help maximize and protect business value and personal wealth. In every interaction, we consistently maintain our clients’ confidence by remaining focused on furthering their objectives and achieving their goals in an efficient manner. Trust, knowledge, confidence—in a partner, that’s perfect.
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