When you buy a business you should consider setting up a corporation or limited liability company (LLC) to buy the business. You should avoid signing any contracts, loan agreements and leases in your personal name. In certain cases you may be required to personally guarantee the loan or other debts but it is still recommended that you place those agreements in the company name. It is often surprising how your start-up documents may impact litigation issues down the road. If those agreements are in the business name it may help you avoid personal liability in the future. One of the main purposes of a corporation of LLC is to protect your personal assets from the risks of the business. It is smart to start right from the very beginning.
Click here for more information on setting up a corporation or LLC for your Iowa business.