The sale of any ongoing business, even a sole proprietorship, can be a complicated transaction. The buyer and must consider the law of contracts, taxation, and real estate in many situations. A sale of a business is considered for tax purposes to be a sale of the various assets involved. Therefore it is important that the contract allocate parts of the total payment among the items being sold. The sale might involve the assignment of a lease, the transfer of good will, equipment, furniture, fixtures, merchandise, and inventory. The sale may also include the transfer of the business name, accounts receivables, contracts, cash on hand and on deposit, and other tangible or intangible properties. In making this allocation, the buyer's interests will often conflict with the seller's. The seller will ordinarily seek to maximize its capital gain and ordinary loss by allocating the price to items producing such a result. The buyer will normally seek to have the price allocated to depreciable assets and to inventory in order to maximize ordinary deductions after the business is acquired.
The New Mexico Agreement for Sale of Dental and Orthodontic Practice is a legally binding document that outlines the terms and conditions of the sale and purchase of a dental or orthodontic practice in the state of New Mexico. This agreement is crucial for both parties involved — the seller who wishes to sell their practice and the buyer who seeks to acquire an established dental or orthodontic practice. The agreement ensures a smooth transaction while protecting the rights and interests of both parties. Keywords: New Mexico, agreement, sale, dental, orthodontic, practice, terms and conditions, legally binding, seller, buyer, transaction, rights, interests. There are several types of New Mexico Agreement for Sale of Dental and Orthodontic Practice, which may include: 1. Asset Purchase Agreement: This type of agreement focuses on the sale and purchase of specific assets of the dental or orthodontic practice, such as equipment, patient records, furniture, and supplies. The agreement will detail the list of assets being sold and their corresponding value. 2. Stock Purchase Agreement: In this case, the agreement involves the transfer of ownership of the entire dental or orthodontic practice, including its stock or shares. The buyer acquires the existing corporation or entity, thus assuming all assets, liabilities, contracts, and licenses associated with the practice. 3. Partnership Agreement: This type of agreement is used when two or more dentists or orthodontists form a partnership for the purpose of buying or selling a dental or orthodontic practice. It outlines the rights, responsibilities, profit-sharing, and decision-making processes for each partner involved. 4. Non-Compete Agreement: This agreement is often included as a separate document within the sale of dental or orthodontic practice agreement. It restricts the seller from competing with the buyer within a specified geographic area for a certain period after the sale is completed. This provision safeguards the buyer's investment and patient base. 5. Employment Agreement: Sometimes, the buyer may require the seller (i.e., the original dentist or orthodontist) to continue working in the practice for a specified period after the sale. The employment agreement outlines the terms of the seller's employment, including work hours, compensation, benefits, and responsibilities. It's important to consult with legal professionals experienced in dental and orthodontic practice acquisitions in New Mexico to draft an appropriate agreement tailored to the specific needs and circumstances of the parties involved.
