A business bill of sale is a legal document that acknowledges the sale of a business and the change of its ownership, including the assets. The business bill of sale outlines the terms and conditions of the transaction, essential details about the buyer and seller, besides acting a vital record of the final deal. Any transaction involving the sale of a business requires a business bill of sale. This document is crucial since the state and local governments will need it as part of the registration of the business. The business bill of sale is also used as a proof of ownership of the particular business.
Documents required when selling a business
Selling a business is a complex process that needs to be handled by a professional; you can hire a broker, attorney, or a sales advisory board for this task. You’ll require the following documents when selling your business:
- A comprehensive list of business assets.
- Financial statements
- A list of employees& payroll
- Non-disclosure forms
- Insurance forms
- Tax & revenue records for not less than three years
- Customers & distributor agreements
- Images of the business
- An operating manual for the business
- A business bill of sale should include the following details
- Name& Address of the buyer and seller
- Business name
- Date of the transaction
- Business details such as an address, assets, share, state of incorporation, etc.
- Price
- Signatures & date for both buyer and seller
- Names, signature, and dates of witnesses
- Acknowledgment certificate from a public notary
Free Bill of Sale Form
Bill of Sale VS Purchase or Sale Agreement
Although a business bill of sale and a sales agreement have many similarities, they differ slightly mainly on the timing. These two documents are used in transactions involving the sale of goods between a buyer and a seller.
A sales agreement is issued in anticipation of the future sale of goods and highlights the terms and conditions of the sale. Thus it’s issued before the goods are exchanged. When the buyer signs this agreement, they confirm to buy the products based on the agreed terms while the seller is willing to sell the goods as agreed.
On the other hand, the bill of sale is a document that is used when transferring goods from the seller to the buyer or after the sale process is over. This document indicates the goods being exchanged besides transferring ownership to the buyer. The seller can also include the ‘as-is’ clause in the bill of sale; they may also include any warranties attached to these goods.