3 ms·
Technically, your customers have never agreed to be charged by this new company you’re setting up - it’s an entirely separate legal entity from yourself. There’
by vertex-four 8y ago
Technically, your customers have never agreed to be charged by this new company you’re setting up - it’s an entirely separate legal entity from yourself. There’s no way to start charging them from a separate legal entity without their consent, so a bulk import is probably not what you are permitted to do.
- ensignavenger 8y agoBusinesses get acquired all the time- in this case, the new entity has acquired the assets and customers of the old entity. Thus the contract you have with the customer has been transferred to the new entity.
- hosh 8y agoIn this case, the new entity is a limited liability company and the old entity is a sole proprietorshio with no liability protection. Part of the protection comes from acting as if the limited liability entity is a legal “person”. Failure to do so can be used by creditors to “pierce the veil”. There is usually some sort of document transferring the assets of the sole proprietorship into the C-corp or LLC in return for shares for membership interest, as part of the capitalization. Perhaps talk to a CPA or a lawyer about all of this ...
- SkyPuncher 8y agoAn acquisition does not mean that the original entity no longer exists. It simply means ownership of that entity has changed. The original entity can live as a subsidiary of the new owner without having to actually change any of the contractual stuff.