Can I sell my business without a solicitor?

How do I legally sell my business?

Legal Documents Needed to Sell a Business

  1. Non-Disclosure Confidentiality Agreement.
  2. Personal Financial Statement Form for Buyer to Complete.
  3. Offer-to-Purchase Agreement.
  4. Note of Seller Financing.
  5. Financial Statements for Current and Past Two to Three Years.
  6. Statement of Seller’s Discretionary Earnings and Cash Flow.

How do I sell my business privately?

Make selling your small business easy with these seven steps.

  1. Determine the value of your company. …
  2. Clean up your small business financials. …
  3. Prepare your exit strategy in advance. …
  4. Boost your sales. …
  5. Find a business broker. …
  6. Pre-qualify your buyers. …
  7. Get business contracts in order.

What paperwork is needed to sell a business?

A business bill of sale is a legal document that recognizes the sale and change of ownership of a business and all its assets. The Business Bill of Sale sets the terms for the sale, details key information of the buyer and seller, and acts as a key record of the final transaction.

Who pays closing costs when selling a business?

Although buyer vs. seller closing costs vary, they’re usually predictable. Sometimes, the seller can be asked to pay for some closing costs instead of the buyer, but it’s important to keep in mind that they’re already paying around 6 percent of the total sale in agent fees and commissions.

IT IS IMPORTANT:  What are disadvantages of owning a franchise?

Can you sell a business but keep the name?

The name of a business can be one of the greatest assets a company can own. … While you have the option of selling a business and retaining ownership of the business name, if you decide to transfer the business name, there are a few things you’ll need to consider.

How much tax do you pay when you sell your business?

Capital Gains Tax on Selling a Business

The top irs federal personal income tax rate is currently 37% for the highest tax bracket. If you’ve held it for more than a year, you’ll be taxed at the capital gain tax rate for long term capital gains, currently 15%. Either way you would fill out IRS Form T2125.

How much can you sell your small business for?

A business will likely sell for two to four times seller’s discretionary earnings (SDE)range –the majority selling within the 2 to 3 range. In essence, if the annual cash flow is $200,000, the selling price will likely be between $400,000 and $600,000.

How do you liquidate a small business?

Liquidating Assets

  1. Talk to your lawyer & accountant. …
  2. Scrutinize your assets: inventory, assess, & prepare each item for sale. …
  3. Secure your merchandise. …
  4. Establish the liquidation value of your assets. …
  5. Make certain that a sale is worthwhile. …
  6. Choose the best type of sale for your merchandise. …
  7. Select the best time for your sale.

What happens to cash when selling a business?

What happens to cash in a business transaction? … The business owner retains any and all cash or cash equivalents, such as bonds or any money market funds. Cash is deemed to include any petty cash on hand and funds in the company’s bank accounts.

IT IS IMPORTANT:  Can you claim business start up expenses?

How do you avoid paying taxes when you sell your business?

One of the most common ways to reduce the tax liability of a business sale is to receive payment over time. By deferring the receipt of proceeds over multiple years, you can control your tax rate by managing the portion of the sale price that falls into higher tax brackets.