On Monday Sam Kreamer was back on Insight on Business – The News Hour with Michael Libbie going over some of the Do’s and Don’t’s of business start ups. Click the link below to listen to the podcast!
Last week, we answered a couple questions about what happens to food and liquor inventory during the sale of a restaurant. Our clients have also inquired as to whether the licenses from the health inspectors or alcoholic beverages division can be transferred to the new owner of the restaurant.
FOOD/HEALTH INSPECTION LICENSE: A food license is not transferable from one owner to the next. (IA ADC 481-30.3). Any time a new owner takes over operations or is added in as a partner, a new license must be obtained. The same is also true if an establishment simply changes location. In order to obtain a new license, an owner must apply for the license with the Department of Inspections and Appeals, an inspection will be done, and upon approval, the license will be distributed. On the other hand, if a corporation owns a restaurant, a change in officers or stockholders of the corporation does not require a new license. (Judy Harrison, Bureau Chief, IA Dept. of Inspections and Appeals, 515-281-6538).
LIQUOR LICENSE: A liquor license may not be transferred from one person to another. (IA ADC 185-4.13). Consecutive owners must reapply for the license through the Alcoholic Beverages Division. However, a liquor license may be transferred from one location to another, as long as the ownership remains the same. In order to do this, the licensee must file an application for transfer of liquor license, wine permit, or beer permit with the Iowa Alcoholic Beverages Division. The transfer is limited by jurisdiction, depending on the boundaries of the issuing authority. If the authority was on the county-level, it may be transferred within the county, but if the authority was a city authority, it may only be transferred within the incorporated city limits.
CONCLUSION: Licenses, whether for food/health inspections or allowing the sale of liquor, cannot be transferred to a new owner. Each owner must apply for a license through the respective Iowa administrative agency.
At Kreamer Law Firm P.C., we can help make each step in transferring ownership of a restaurant easier for both the buyer and the seller. If you, or someone you know, have any questions about buying or selling a restaurant, contact us at email@example.com or call us at 515-727-0900.
Again, I go on air to discuss with Michael Libbie the final part of our Three-Part Interview on “What Happens to Your Business If Anything Happens to You?” This time we’re discussing who will have the power to make the decisions for your business if you can’t.
Click the link below to watch the podcast, and if you need legal help with any business questions or concerns, please feel free to email us at firstname.lastname@example.org or call us at (515)727-0900.
Businesses really have only two choices: they can grow (through formation or purchases) or go away (mostly by sale). Those are the two things I spoke about during a recent Lunch and Learn presented for the West Des Moines Chamber of Commerce. If you would like to access the PowerPoint I used, click this link:Chamber Luncheon Final
Here are the high points of what we discussed:
- Identifying an Opportunity;
- How to Avoid Pitfalls;
- What the Buying/Selling Process Looks Like;
- Pricing the Transaction;
- Structuring the Transaction.
Following the formal presentation I took questions from the attendees. The one item that stands out was a question about the size of transactions I normally worked on. I responded that in my 30+ years I have worked on transactions ranging from start-ups all the way through the sale of a $45,000,000 company, but the most important transaction is whatever my client(s) need to accomplish.
However, the best question came as I was packing up to leave. An attendee came to me and asked, “Why is it that you simply gave us all of this information free of charge?” My answer was really pretty simple: “My job is to help businesses and individuals achieve their goals. For me, that includes providing people with an opportunity to expand their business knowledge. Simply giving some valuable information away for free? No, I’m doing what I love.”
The Kreamer Law Firm specializes in business law as well as estate law. We Get Things Done!
Buying and/or selling a business requires many considerations. For example, you may find yourself wondering:
- How to identify the right opportunity as a buyer or a seller;
- What pitfalls might lurk in the existing economy;
- How will the pricing and the structuring of the transaction work;
- What’s the process behind the transaction numbers?
Please consider joining me on August 13th. I’ll be hosting the Lunch and Learn event through the West Des Moines Chamber of Commerce and talking about this topic which is really, very useful in a city like West Des Moines where businesses and companies thrive.
Buying or selling a business can be a very tricky process; even in a simple transaction there can be many questions. Come to the Lunch and Learn on August 13 which will be held at 4200 Mill Civic Parkway West Des Moines, IA and find out more about what it takes to get through the buying/selling process. The end result can be very rewarding for both parties.
This will be a great event and I can’t wait to answer your questions. Click this link to sign up. You don’t need to be a member to attend, so feel free to bring any and all questions you have.
Recently minimum wage has been all over the news. Some states and even some cities have passed laws that have raised the minimum wage, recognizing what a person must earn to make a living. Because of this, people are asking, “How much must I pay my W-2 employees here in Iowa?”
The law in Iowa sets a minimum wage of $7.25/hour and applies to all employers whose gross annual sales are $300,000 or more. The Federal minimum wage is the same $7.25/hour and applies to all employers whose gross annual sales are $500,000 or more. When both the Federal requirements and state law apply, it’s actually the law which sets the higher standards that must be followed by the employer. So, in the states that have passed higher minimum wage rates, the local law actually trumps Federal law.
The laws on wages in Iowa have some slight exceptions. For example, if the business employs tipped employees (defined as an employee who makes $30/month or more on tips), then the business can pay as little as $4.35/hour (Iowa) or $2.13/hour (Federal). However, in any given week where the employee’s wages do not average at least $7.25/hour, the business is required to pay the difference.
Another income regulation to consider is that Iowa law also allows for an employer to pay an employee an “initial employment wage” of $6.35/hour for that employee’s first 90 days of employment. Federal law allows for employees under the age of 20 to be paid as little as $4.25/hour for the same 90 day period. This period allows the employee time to train until they are able to fully handle the workload.
If you, or someone you know, are in need of legal services regarding employment wage questions or employees, feel free to contact us at Kreamer Law Firm, P.C. through our website at www.KreamerLaw.com or by calling us at 515-727-0900.
This blog is part of a series of blogs on buying a business. We are first exploring the qualities you need when deciding to whether or not you are should buy a business. I encourage you to go back and read the previous blogs.
This week we are discussing access to commitment.
Commitment. The one indispensable characteristic of a successful Buyer is commitment. By this I mean that although a Buyer will not succeed simply because they ARE committed to the business; it is certain that the business will fail if they are not. Business commitment takes many forms. Business ownership can take a toll on the Buyer’s social and family life in addition to their financial situation. Accordingly, a Buyer, and to some extent their family and friends, must be willing to make some short term sacrifices to reap long term benefits. Among the commitments successful Buyers make is to be “life long learners.” There are many good business books and courses. Four books that we strongly recommend are: “Getting to Yes” by Roger Fisher and William Ury; “Guerilla Marketing” by Jay Conrad Levinson; “From Good to Great” by James Collins and “E-Myth Revisited” by Michael Gerber.
If you would like assistance in regards to the purchase/sale of a business, please contact me at http://www.kreamerlaw.com.