If you are thinking about retiring, or selling your business for any other reason, there are some important things to take care of, after you’ve agreed on a sale price and other aspects of the sale with your buyer.
Here are some of the things you should keep in mind, to help your change of business ownership come off more smoothly.
Seek an attorney’s help
You definitely need the help of an attorney to manage some of the legal documents associated with the transfer of business ownership. There are always a number of tasks to be accomplished, some of which are very complex in nature, and many of these require the knowledge and experience of a good attorney.
Dissolving your business
If you’re simply retiring and dissolving your business, you’ll have to notify the business division of your specific state, and undergo legal dissolution. If you have sold your business to someone else, that will call for a change to the business structure, so that a new owner can be taken in. If you have a Board of Directors or management team, they will have to meet and approve all those actions which are necessary to remove yourself as part of ownership, and admit the new owners.
Documents necessary for business ownership transfer
Since a change of business ownership involves the termination of one business and the starting of another one, there will be several important documents necessary for the creation of the new business. The new owner will have to acquire an EIN which is issued by the IRS, and they will also have to obtain a state EIN. Any business documents which have previously been filed with your state must be changed, and the old business structure must be dissolved, so that a new entity can be created. Once the sale has been completed and everything is been transferred to the new owners, you can then liquidate your old business.
Is your company going through a change in business ownership?
Sometimes an infusion of cash into your company is essential at such times, to help with the transition to the new ownership team. Contact us at Elevation Financial if your small business is undergoing an ownership change. We may be able to provide financial assistance for the whole process.