If the business you plan to purchase is a corporation or LLC, it is important to review the entity documents and related records such as bylaws, resolutions, and operating agreements. This step ensures that the business is properly registered and operates within the legal framework. It is also essential to verify with the state that the business is in good standing and that the owner has the legal rights to sell it. Confirming the business’ entity status helps protect against any legal issues or disputes in the future.