Ready To Sell Nevada A Corporation? Buyers Are Waiting
Selling Your Company - The Basics
December 27, 2004
By Tom SeFack
To successfully sell a Nevada corporation,
it is of utmost importance to understand what the
buyers are looking for. First of all, they are of
course looking for the protection of Nevada's laws
and favorable tax environment, which is something
you as an owner of a corporation can hardly influence.
Apart from that, however, there is a number of criteria
that make the price and are easily influenceable by
current owner and seller.
Make sure the corporation for sale is free from any defects whatsoever,
having no liens or judgments. All the formation documents, articles
of incorporation, date of incorporation, record book, charter from
the secretary of state, corporate seal, stock certificates, bylaws
and meeting minutes have to be delivered, where applicable.
The price of the corporation grows with the age, as it is with
a good wine. While companies aged between 1-10 years are mostly
available on the market, major percentage of buyers is looking for
one up to 3 years old usually. Largest part of the price are the
fees paid on incorporation and each year after, and the profit of
the seller.
Buyers will pay more for an existing tax ID number, employer ID
number and bank account. Good standing of the corporation with the
State of Nevada is implied. Existing Dunn and Bradstreet number
is a big plus, as the creditworthiness is one of the main reasons
why purchase of an existing corporation is preferred over forming
a new one. Make sure that the non-activity tax returns for the company
were filed, for your company to be more marketable.
Corporations that meet all the criteria listed above can be sold
for up to twice the price of a company of same age with no bank
account, no credit cards nor employer ID number, for example. So
a little effort put into keeping your aged corporation "well
equipped" will surely pay off handsomely in a long term.
Be aware that buyers can check various pieces of information about
your Nevada corporation directly with Nevada Secretary of State.
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