Is New Jersey bulk sales law applicable to a stock sale?

A: When you buy a business in New Jersey, state law requires the business purchaser to issue the "pre-closing" notification of the proposed business sale. This notification must also include the terms of the sale and the expected date of the transaction's closing. This pre-closing notification is known as a "Bulk Sales Notice".

If you are the purchaser of a business in New Jersey, this bulk sales notice can be prepared by your New Jersey business lawyer. Once prepared by your New Jersey business lawyer, this bulk sales notice must be filed with the New Jersey State Division of Taxation. Your attorney can help ensure that you complete the filing in accordance with New Jersey's most up-to-date time requirements.

If the purchase of the business in New Jersey includes a stock sale, then YES, the same pre-closing notification will apply to the transaction.

How a New Jersey Business Lawyer Can Help

When buying a business in New Jersey, there are many things to understand about this type of transaction. This type of purchase may include franchise disclosures, licensing agreements, restrictions and obligations. You may need to understand things such as: 

• a lease agreement;
• a trademark licensing agreement;
• shareholder and partnership agreements;
• obligations for fees, maintenance, and minimum purchase requirements; as well as
• franchise registration. 

When making your purchase, you will want to be certain of a sound business decision. Your New Jersey business lawyer can help you to understand the legal implications involved so that you are prepared for the decision-making process, and make sure that you understand the terms and your potential obligations.

Contacting a New Jersey Business Lawyer

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New Jersey business lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

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