Legal Question in Business Law in Washington

Re: Business

That depends on several things (standard attorney answer; I know).

First, is your father's business an entity (such as a corporation or an LLC)? Or is it a sole proprietorship? If an entity, the entity must go through the proper formalities to sell you the business. If an LLC, for example, the members (even if only one member; your father) should formally vote to sell, following whatever process is called for in the LLC operating agreement.

You will also need a contract which spells out terms of sale; are you purchasing the assets only (including goodwill, trade name etc) or are you purchasing the company with liabilities? Are you making payments or buying it outright? What happens if you miss a payment? You may also want an indemnity agreement. (Sounds like even though you may trust your father, you may not trust his heirs, so get the paperwork you would need if dealing with them.)

You should also have a bill of sale, and if there is a motor vehicle involved, a separate bill of sale for the motor vehicle.

Are there any other owners or partners involved? If so, will they be staying on or are you buying them out, too? Additional paperwork will be needed depending on how they fit in the picture and what will be happening with them.

Are there licenses that will need to be reapplied for that are currently under your father's name?

Buying a business, whether from your father or from someone at more of an arm's length, is an investment not only of your money but of your time going forward. It also creates lots of opportunity for you to be vulnerable for significant loss if not done right. If the sale is straight forward and involves a small business, a good attorney should be able to arrange the paperwork you need without "overlawyering" the deal and costing you large sums. I see by your zip code that you are in Yakima. There should be a good attorney in your area that can arrange things without relieving you of all your operating capital. Spending a little now could save you a lot of money later.

Good luck with your new business!