If you sell or transfer your business ownership to someone else, you will need to transfer ownership of your business name as well. 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 do you take over ownership of a business?
Ways to Transfer Ownership of Your Business
- Adding a Partner. The operating agreement describes how new partners can be taken on and how much the new partners will have to pay for their ownership interests. …
- Sale of Business. There are two major methods to sell a private business: …
- Lease-Purchase. …
- Family Member Transfer.
Can you sell a business name?
When selling your business, you will most likely need to transfer the business name to the new owner. However, the sale of business process can be detailed, and you need to follow it carefully to ensure you are not breaching your sale of business agreement.
Can your business have the same name as another business?
Generally, as long as no one else in your state is using that business name, you can call your company whatever you like. Names are doled out on a first-come, first-served basis. … That said, you can run into trademark issues if your business and another’s fall within the same category or are substantially similar.
Can you get in trouble for having the same name as another business?
Your name cannot be the same as another registered company’s name. If your name is too similar to another company’s name or trade mark you may have to change it if someone makes a complaint. Your name must usually end in either ‘Limited’ or ‘Ltd’.
Can I give my business to someone else?
It is possible to transfer the ownership of a business in multiple ways or through a business succession plan. … However, if he or she is the sole owner, it is possible to add a partner. The individual could process the sale through a limited liability company or with a corporation.
Do I pay tax when I sell my business?
Regardless of your structure, selling your business is considered to be selling an asset. This means you make a capital gain on this sale, which means you have to pay capital gains tax. Put simply, a capital gain refers to the profit you make on the sale of an asset.
What paperwork is needed to sell a business?
Offer-to-Purchase Agreement. Note of Seller Financing. Financial Statements for Current and Past Two to Three Years. Statement of Seller’s Discretionary Earnings and Cash Flow.
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.
Does my business name already exist?
To see if a specific company name exists and is trademarked, search for the name using the USPTO website’s electronic search system. This search is especially important because failure to check existing trademarks could result in charges of willful infringement of a company’s trademark rights.
What if someone is using my business name?
If someone uses your name, simply showing proof that you’ve trademarked the name could be enough to convince a business to choose something else. Most importantly, if you must go to court, you’ll have legal proof that you registered the name. However, you don’t have to trademark your business name to protect it.
How can I make my business name legal?
To legally name a business, you will need to form a company with the desired name, file a DBA, or file an amendment to change its legal name.
Why can’t two businesses have the same name?
Under the rules, the phrase ‘identical or nearly identical’ has a specific meaning. If a name is identical or nearly identical to another name, we must not register it. However, the law does not prevent the registration of business names that are similar.
What if my business name is similar to another?
A business name generally can be protected as a trademark under federal and state trademark law. … As a general rule, if someone in a similar field to yours is already using a particular business or organization name, you should not use it, nor should you use a name that would be confusingly similar.
Can 2 business have the same address?
Multiple business entities may have the same address, just make sure that you incorporate each business as a separate entity with the Secretary of State. You may want to consider one parent cooperation with divergent subsidiaries acting independently of each other.