Legal Question in Business Law in Michigan

Purchasing an existing C-Corp

I am negotiating the purchase of a C-

Corp marketing consultant company

based in Michigan. The business

owner was going to dissolve the

company. I expressed interest in the

company name, domain, etc. He has

no assets to speak of (other than the

PR he has created for the company),

no employees, and owns 100% of

stocks. We both figured this would

be a simple purchase deal. The

benefit to me in going this route

verses doing a start-up is not having

to go through the entire start-up

process and obtaining the company

name and domain. Now his lawyer

contacted me and directed me to

register my own corporation and

company name form BCS/CD-500),

paying all associated fees. Then to

obtain my own Tax ID. At the same

time, they are instructing me to

complete and Application for

Reservation of Name (form BCS/CD-

540), reserving this company name

that would then be handed over to

my new company after he dissolves

his corporation. Can you advise me if

this is standard or what I should be

doing?


Asked on 8/13/08, 1:12 pm

1 Answer from Attorneys
Lesley Hoenig Lesley A. Hoenig, Attorney at Law

Re: Purchasing an existing C-Corp

I think the best thing for you to do is to find an attorney that deals with business formation on a regular basis to help you negotiate this deal. You do not want to rely on what the other party is telling you because it is in that party's best interest and may or may not benefit you.

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Answered on 8/13/08, 2:03 pm


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