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A business bill of sale is a legal template that contains the details of a transaction to transfer the ownership of a business entity from one person, the seller, to another person, the buyer. Once signed by both the seller and buyer, the document validates the transfer and could be used in court of law to demonstrate ownership.
As entrepreneurs prefer to undertake investment that offer less risk, many people looking to go into business prefer buying an existing business to starting a new one from the scratch. However, in buying a business, it is vital that a bill of sale of business is used as this will protect both the seller and the buyer.
Among the vital information contained in the business bill of sale form are: names of seller and buyer, addresses of both the seller and buyer, date that the ownership of the business is transferred, detailed description of the business, and the amount involved in the transaction.
How to Write a Bill of Sale of Business
- Step 1: Enter the name of the seller
- Step 2: Enter the name of the buyer
- Step 3: Enter the name of the business
- Step 4: Enter the number of years of warranty
- Step 5: Enter a description of the nature of business being transferred
- Step 6: Enter the name of the state within which guaranty has been given
- Step 7: Enter the date of transaction
- Step 8: The seller appends his signature followed by the signature of the buyer
From a legal perspective, a bill of sale of business form makes the life of both buyer and seller of a business easier as it documents the entire transaction and therefore eliminate the possibility of a potential snag springing up regarding the validity of the transfer of ownership. However, both the seller and buyer must ensure that full and accurate information is supplied before signing the document. If you have decided to buy or sell a business, you will want to be sure you take the appropriate steps and do not leave room for any complications down the road.