U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Economics > Business
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 04-23-2013, 01:02 PM
 
43,012 posts, read 97,180,389 times
Reputation: 30500

Advertisements

I just got off the phone with someone who is selling a start-up a brick and mortar business in my area. For a start-up, the price is right for the merchandise, software, etc. I looked up the business name on the Pennsylvania Business Name Search website. It was founded last year. It's owned by a Delaware corporation. I looked up the Delaware corporation on Delaware's Entity Search webpage. The owner's name doesn't match the name of the person I spoke with. Everything else she told me matches. She said she bought the building and is running a business in the space next door. I searched our county real estate records. She does own the building. I searched the business she is running in the other space, that business is in her name. WTF? Why is the one she is selling not even in her name?

2006 Delaware Corporation started in someone else's name
2006 Pennsylvania Fictitious Name in her name for the business she runs in next door space
2010 Building Purchased in her name
2012 Pennsylvania LLC started in Delaware corporation's name for the business she is selling

Should I wonder about this? I'd only need the business name if I choose to take it, but how can I be sure this woman has a right to sell the inventory and such? Do I just make sure that the Delaware corporation and owner's name is on all of the paperwork?

Also, I believe in need to use the business name if I am buying the software because she said the software is in the business name and she's not sure about transferring the software to another business name. She seemed to think the software can be transferred once but the business name had to remain.

During our conversation, I asked the business name. Then I asked her if she already got the LLC. She said she had but she didn't know how we go about changing it to my ownership. She said it as if it were merely a detail of how to do it, not that it couldn't be done.

Of course, a lawyer can help me with all of this, but I'm not going to bother getting a lawyer if it seems shady from the start. I don't have to buy this business. I'm just in the "let's look at it and think about it stage." I'm wondering if other people's gut reactions are similar to mine or if I'm being overly suspicious?

Last edited by Hopes; 04-23-2013 at 01:32 PM..
Rate this post positively Reply With Quote Quick reply to this message

 
Old 04-23-2013, 01:21 PM
 
Location: Aiken, South Carolina, US of A
1,787 posts, read 4,230,401 times
Reputation: 3625
Hopes,
Is she selling you the building?
Is she going through a big named realtor?
No building, forget it.
It's worthless.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-23-2013, 01:30 PM
 
43,012 posts, read 97,180,389 times
Reputation: 30500
No building. It's not worthless. It's similar to a business I have been planning to start. I've been doing my research for eternity. The price is a good deal for the inventory, software, store fixtures, etc. I'd pay more if I did it front scratch. The rent is in line with the price of storefronts I have been looking at for the past few months.

I'm not asking if it's worth money. I'm asking if the ownership sounds questionable to others.

I will get a lawyer if I decide to go forward. I'm just asking gut instincts about the ownership.

It almost seems like she could have seized someone else's business that was a tenant and is now trying to sell the business.

That's my concern, not the price and worth.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-23-2013, 02:00 PM
 
43,012 posts, read 97,180,389 times
Reputation: 30500
I figured it out. To have a Delaware Corporation, you're required to have a registered agent in Delaware.

DELAWARE REGISTERED AGENT INFORMATION
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics > Business
Follow City-Data.com founder on our Forum or

All times are GMT -6. The time now is 01:15 AM.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top