This is intended as a guideline only. Some of the items may not be applicable to your transaction. If in doubt, consult your broker, lawyer or accountant.
Must dos: Apply for Federal Employer Identification Number. Set up business checking account (separate account for lottery recommended). Complete all items on Lender’s conditional commitment letter. Make arrangements for credit applications to vendors and suppliers. Button up details of property lease to be ready for signature(s).
Insurance Needs: Life insurance with the lender named on a collateral assignment form (not as beneficiary). Workman’s compensation binder. General Liability policy. Contents coverage/business interruption. Product liability. Vehicle and hired & non-owned coverage. Health/Dental transfers.
License, Permits, and Certificates Needs: Common Victualer. Alcoholic beverages transfer application. Lottery. Frozen dessert, milk, bakery, etc. Fictitious name (business d/b/a) town clerk. Resale/sales tax certificates. Cigarette license. Food stamps/vouchers. Health department. Franchise agreement transfer.
Utilities: Electric (may require 2 average month’s deposit). Gas/Oil Phone (requires seller’s consent to transfer phone number). Trash/rubbish removal. Alarm/Security. Pest Control.
In General: Have Seller prepare a list of accounts receivable/payable. Have Seller prepare a list of outstanding gift certificates. Form a corporation, reserve name with Secretary of State’s Office, name Directors & Officers Prepare to have certified funds available at closing. Check all furniture, fixtures and equipment for operating condition. Make arrangements for business computer records to be copied to your PC (the Seller usually wants to keep his or her own PC) Speak with Payroll Processing Company to insure orderly transition.
