After many years of running a business in Texas, you may be ready to retire or let someone else take charge of its ownership. When changing the ownership of a business, you have several options. Businesses can be sold to an individual or company outright, or sold by allowing the buyer to make payments. Depending on the type of business, the new owner may need to apply for a Texas sales tax and use permit. A health inspection also may be necessary if the business is located in certain Texas cities.
Sell the business to the company or individual. You may choose to accept one lump sum as payment, or you may accept payment in installments. If you take payments from the potential owner, you may agree to allow them to operate the business while installments are made. But ownership usually is not transferred until the final payment is made. You and the buyer also may come to a different sales agreement that works for both parties.
Return your sales tax and use permit to the Texas comptroller if your business involves the sale or lease of tangible personal property or you sell taxable services. Mail it to Texas Comptroller of Public Accounts, P.O. Box 13528, Capitol Station, Austin, TX 78711-3528. This allows the comptroller to cancel the permit in a timely manner. If the comptroller finds out through other channels that you are no longer in business, the permit is canceled automatically.
Instruct the buyer to fill out an application for a new sales tax permit. This can be done online through the second link in this article's Resources section. Notify the new owner that a change-of-ownership inspection may be needed, depending on the city in which the business is located. You may pay the inspection fee or require it of the buyer.
Consult with an attorney if you do not believe you have the expertise to handle any final paperwork or details. Your attorney will meet with the buyer's legal representative to iron out any problems.
You may wish to consult an accountant or an appraiser to determine a selling price for your business.
- Office image by Yvonne Bogdanski from Fotolia.com