This is a protection for any potential buyer to be informed of any unpaid tax liabilities, penalties or bankruptcies known to the seller. Any qualified entities, shareholders, or beneficiaries entering into a voluntary disclosure agreement must fully disclose all facts. The participants must complete an application form FTB 4925.
The FTB Rule has been in effect since the latter part of 1979. This has had a large impact on all business opportunities. The rule is designed to assure all prospective buyers that they'll receive a full disclosure containing the type of background information needed to make an informed decision.
The aggressive actions at the state level especially have saved many would-be licensees from loosing money and have had a broad-ranging impact on the business industry. There are now incredible entrepreneurial success stories in the making due to the Federal Trade Commission Rule (FTC) that was passed. This act now defines business opportunity ventures.
This is why if you are the buyer you should pay especially close attention to the FTC disclosure statement and demand one, or move one. Every prospective buyer of a business opportunity must receive the FTC disclosure statement at least 10 business days before signing a binding contract.
Another consideration to the seller, the buyer must receive the FTC disclosure statement 10 days prior to paying any money. The 10 business day requirement (either way) is minimal. If you haven't received an FTC disclosure document, don't sign anything or pay out any money, even if claims are made that are "refundable."
In addition, most states include information stating that the buyer has three to seven days referred to as a "cooling off" period so he can reconsider the situation after all of the commotion. The government is aware of the selling pitches from many slick salespeople. Since this is a big decision and a large amount of money involved, time is very valuable.
If there are any questions regarding the history of the company you are planning to purchase, ask. The history of the parent company needs to be detailed. It should include the identity and business experience of any persons affiliated.
Financial statements of the company are required in every state and are an audited financial statement prepared by a CPA or loan representative. There is usually a letter from the accountant indicating that the books have been thoroughly audited and are available for study. Any estimates or projections of earning would have to be part of the disclosure statement.
The FTB Rule has been in effect since the latter part of 1979. This has had a large impact on all business opportunities. The rule is designed to assure all prospective buyers that they'll receive a full disclosure containing the type of background information needed to make an informed decision.
The aggressive actions at the state level especially have saved many would-be licensees from loosing money and have had a broad-ranging impact on the business industry. There are now incredible entrepreneurial success stories in the making due to the Federal Trade Commission Rule (FTC) that was passed. This act now defines business opportunity ventures.
This is why if you are the buyer you should pay especially close attention to the FTC disclosure statement and demand one, or move one. Every prospective buyer of a business opportunity must receive the FTC disclosure statement at least 10 business days before signing a binding contract.
Another consideration to the seller, the buyer must receive the FTC disclosure statement 10 days prior to paying any money. The 10 business day requirement (either way) is minimal. If you haven't received an FTC disclosure document, don't sign anything or pay out any money, even if claims are made that are "refundable."
In addition, most states include information stating that the buyer has three to seven days referred to as a "cooling off" period so he can reconsider the situation after all of the commotion. The government is aware of the selling pitches from many slick salespeople. Since this is a big decision and a large amount of money involved, time is very valuable.
If there are any questions regarding the history of the company you are planning to purchase, ask. The history of the parent company needs to be detailed. It should include the identity and business experience of any persons affiliated.
Financial statements of the company are required in every state and are an audited financial statement prepared by a CPA or loan representative. There is usually a letter from the accountant indicating that the books have been thoroughly audited and are available for study. Any estimates or projections of earning would have to be part of the disclosure statement.
About the Author:
Myles Krueger is a great resource at helping students, followers, and entrepreneurs find home work business opportunities that make profit. He also is talented at spotting a work at home business opportunity that fits your skills.
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