Entity ownership transfers are a very common occurrence with thousands of transactions every year. Usually, the ownership transfer of an Entity is involved with purchasing business assets as well, such as when an active profit producing Business is purchased by an Investor.
Our Investors Ideally want to purchase an Entity that has NO assets, NO liabilities and is no longer in operational use. For example, if you just completed an Asset Sale of your Business and there are no longer assets or liabilities, only the Entity itself left behind because the new Owner of the sold business formed their own new Entity. Why spend time and money to dissolve the old Entity when you can Sell this last Asset, with a standalone value.
Since a standalone Entity transfer is without assets, cash, liabilities or an expectation of an operating business the transaction is very simple and straight forward. When you are presented with an offer for your Entity, the Investor will have a very simple and short purchase agreement. When you have this purchase agreement in hand and know the price offered you would seek qualified legal advice at that time. The income you receive from the sale of an Entity will result in 1099 reporting of the income and you would seek qualified Tax advice.
This website does not contain tax, accounting or legal advice, any mention of such advice should be considered the opinion of the sender solely and verified for correct information by a qualified Advisor. Changing Owners is a lead generation referral source for Investors and Managing Officers of target entity acquisitions should seek and rely upon tax and legal advice from qualified advisors. All Investors should be advised: the transmitting Client Liaison does not and cannot warrant or guarantee the accuracy of any business information transmitted. As Client Liaison, we accept information from the Managing Officer in an “as is” condition and do not audit or otherwise verify its accuracy. Each Individual is accordingly advised to verify the information they receive through their own diligence and rely upon qualified advisors.