Is it possible to get Indemnity on debts from a business you are taking over?

I am taking over a new business. The business does not have its own ID number, the owner uses his own social doing business as...... I plan to run the business the same way. Basically I plan to start processing all new payments and servicing clients. The owner does agree to grant me indemnity over the old debts of the business which he still owes. Some are in his name, others the business. Our deal is separate; I plan to give him a share of the cash flow until a set amount has been paid. But I don鈥檛 want his old debtors coming back on me, with law suits, or past due notices, etc. Is what I am thinking possible with an agreement or contract? Or are there potential complexities?

You are not buying his business, you are buying his contracts, big difference.

A business is an entity all unto itself. It has its own Federal ID number. It legally exists until it is closed by dissolution.

If you buy a business, you buy everything that exists in that company's name. It's stock, inventory, employees, all debts, all rental agreements (such as the lease), etc. The company exists the entire time, it just changes hands and papers are filed at the state to show who the new directors and officers are.

If you buy a contract, that's all you buy. You now own (or your business does) all the rights and responsibilities of that contract.

His company, as a dba, will expire when the dba filing does ... usually about 5 years. Of course, he could file to get rid of it before then, but naturally it will die off when the dba expires.

Your company will not begin to exist until you actually file your dba. Get the difference? Two companies, one contract.