- 1 What is the business bill of sale form?
- 2 Important components of the bill of sale form:
- 3 Conclusion:
A business bill of sale form is a legal document that includes the information of ownership of a business from an individual or entity to another. This document is based on an agreed-upon set of terms. A bill of sale assists in facilitating a broad range of dealings such as the sale of motor vehicles, houses, etc. The seller of the business makes this document. Moreover, it includes the details of the arranged transaction.
What is the business bill of sale form?
The business bill of sale form includes terms and provisions. It specifies that a party has transferred their ownership in a business to another entity. The transfer can include shares, stocks, or the whole business depending on the structure of the business. The assets owned by the business can be included in it that can constitute a substantial fraction of its value.
At the conclusion of the selling process, the form is introduced to the organization of the financials. In the end, the seller of the business issues the business bill of Sale form. The document then remains in possession of the buyer. It serves as proof of ownership of the business.
Important components of the bill of sale form:
On the basis of the item on sale and the jurisdiction, the elements of the bill of sale may vary. However, a business bill of sale form should include the following components;
Date of sale
In the bill of sale form, the correct date of the execution must be included. While entering the date in numerical day, written month, numerical year, never make an error. This is because if a legal case arises, an error can be a huge setback.
Details of seller and buyer
Include the name, contact information, and addresses of the seller and buyer on the form. If one or both parties are business entity then include the business information on the bill of sale form.
Along with a detailed description of the business, the form should include the following information about the business;
- The official name of the business
- The place where the seller incorporated the business
- Personal property
- Other interests
In written and numerical format, the seller has to specify the total financial value received for the business sale.
Date of money transfer:
The form should also specify the day, month, and year that the payment was received.
From seller and buyer, signatures and dates:
Both parties have to affix their signatures to the document. Also, some states just require the signature of the buyer. If uncertain then the seller should know about the requirement in their jurisdiction to make sure compliance with the law and validity of the document.
Witnesses signature and name
In a business bill of sale form, many jurisdictions don’t require witness signatures. However, it is a good idea to feature one or two witnesses to serve as proof.
Notary Public Acknowledgement
In the United States, in most states, it is not a requirement. But, it is highly suggested that a seller secure the services of a notary to witness the document regardless of the state. This step assists to ascertain the validity of the document. It also certifies the genuineness of the signatures of both parties. This also specifies that there is an enough understanding of what is being signed.
For a business bill of sale form, the notary public acknowledgement form should include the following information;
- Notary’s Name
- Seller’s name
- Notary’s Signature
- Notary’s Printed Name
- Notary’s Commission Expiration Date
- Notary Seal
In conclusion, a business bill of sale form is a legal agreement between two parties. It provides that it complies with the applicable state laws. This document is used in a sale transaction and feature specific provisions. Additionally, the bill of sale form eases the entire business sale process.