How to Transfer a Business

by Contributing Writer; Updated September 26, 2017

Sometimes it may be necessary to transfer a business from one person, owner, or entity to another, or to allow someone else to handle the operation of a business.

Items you will need

  • Proper forms
  • Knowledge of business codes, licensing laws, and ordinances regarding business transfers
  • Legal counsel, if necessary.

TRANSFER OWNERSHIP OR OPERATION OF A BUSINESS

Step 1

Familiarize yourself with all codes, licensing laws, and ordinances regarding business transfers.

Step 2

Gather all necessary documents, including personal, financial, business, and any other required information on yourself and/or your business, and the person or entity to whom your business will be transferred.

Step 3

Both parties will need to complete all paperwork as it applies to the transferor and transferee. If necessary, have all documents reviewed and approved by legal counsel.

Step 4

Submit all the information to the appropriate authorities; pay any transfer, application, and other fees.

Step 5

Attend any hearings or meetings that are required in order to request approval. Bring all necessary documentation and paperwork with you.

Step 6

If it is necessary or required, once approval has been given, post or publish all required public and legal notifications.

Tips

  • Know exactly who you are dealing with when arranging to transfer a business. Find out as much as you can about the person, entity, or representative. Do your homework! The more advance preparation you have, the easier the process will be.

Warnings

  • Don’t complete the transfer if the person or entity to which you will transfer a business is not forthcoming with any and all necessary information. Do not give in to any undue pressure to transfer a business. If you do not want to do it, then don’t do it. If necessary, inform appropriate law enforcement authorities if you feel threatened or coerces. Do not attempt to transfer a business if you are unsure of everything that is involved or required in the process.