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Legal Ramifications of Selling a Business
Legal Issues you need to know when selling a business

The single most important thing that you can do to protect yourself legally when selling a business is to make a complete disclosure to the buyer about all aspects of the business.

Open up the books for inspection. Show them all leases and other relevant contracts. Let the buyers see everything, warts and all.

Business sales most often go awry when the buyer later feels that the vendor failed to disclose an important aspect of the operation — an act that may constitute fraud. By making a full disclosure, you ensure that no one can accuse you of anything down the road.