cafe business $25 000 then three year lease - is that ok?

guitarman3 wrote:

Taxes payments? How do you mean?

Your lawyer and accountant must know all this and do all the job. It all depends on the structure of your deal. If you buy a company then it has paid taxes and you should make sure the company does not have tax debts, tax law suites or tax complaints.
If you buy merely a franchise then you should check the franchisor's accounting to make sure this business does generate income you expect. In Ukraine it is common that official accounting differs from real accounting.
You also can buy only a trademark, or a premises with equipment, or only equipment... It all depends on structuring the deal.

Epatias wrote:

In addition, taxes are related to sales...the higher taxes it monthly pays, then sales are good but if cafe pays low taxes (obtained for sales), then you will have your answer...

In theory and/or in some another country. As I mentioned above, in Ukraine it is a usual practice to decrease official sales so the profit be less and taxes low. That is why official accounting statements do not always depict a real picture.

guitarman3 wrote:

the current tenant is who i am buying the business off, I'm assuming i will have a new 3 year lease with the owner?
so i should check there are no debts, or tax debts with this business?

It is impossible to answer to your questions without knowing who sells what.

From your last message I understand that the seller rents a premises of the cafe. This means you should make sure the landlord will also lease the premises out to you on terms you need. Because the seller can sell you what you need but the landlord is not obliged to conclude a lease contract with you.

I still do not understand what you buy. If the seller is a private entrepreneur (often called "FOP" or "SPD") then it sells merely his assets (furniture, items of decoration, appliances etc) and maybe a trade mark. In general he sells goods. So his obligations and liabilities are not transferred to you. If the seller runs the business as a limited liability company (called "TOV") then you might buy this company together with all its goods, obligations and liabilities. BTW in this case you will not need to conclude a new lease contract as it passes to you together with the company.