Business bill of sale is a document which contains information about the transfer of ownership of a business from one person to another. It is used when an existing owner of a business wants to relinquish such ownership and transfer it to another party. The document is required by almost all states and jurisdictions. It serves the purpose of redirecting tax liabilities and other issues which a typical business confronts within its lifetime. Also, it absolves the current owner from any future liabilities arising from the said business entity. Generally, the document represents a change of ownership of a business and the accompanying liabilities.
Documents required to fill a bill of sale
- Contacts of present clients and distributors
- Insurance forms
- Financial statements
- Non-disclosure forms
- List of employees and their payrolls
- Business operation manual
- Photo gallery of the business
- Records of assets and inventory
- Tax and revenue records
What should be included in Bill of Sale
- The actual date of sale
- Name and address or both buyer and sale
- Name and details of the business:
- State of incorporation
- Corporate headquarters
- Shares, assets, personal property and other interests which the business engages in
- Purchase price
- The actual date of money transfer
- Dates and signatures of both the buyer and seller
- Names and signatures of witnesses and the corresponding dates
- Certificate of acknowledgment from the relevant public notary
Difference between Bill of Sale and Purchase Sale Agreement
A bill of sale signifies the transfer of ownership of a piece of property from one person to another. A purchase or sale agreement, on the other hand, expresses an intention by one party to acquire some goods from another at a future date.
Though both touch on the transfer of property, they differ markedly beyond that. Here are some of the inherent differences that the two possess:
A bill of sale spells out the transfer of a commodity from one party to another. The sale or purchase agreement, on the other hand, showcases an intention rather than the actual transfer. In this case, the intention is to buy the stipulated stocks later.
With a bill of sale, you may litigate in court, prove property ownership, fill tax returns and even write a will. A purchase or sale agreement will not do you much. It only expresses an intention to purchase the listed stocks but is not legally binding.
The bill of sale touches on physical tangible assets which are private in nature. A purchase or sale agreement, on the other hand, deals with stock rather than private property.
As hinted above, the bill of sale has many legal applications. These range from filling of tax returns, proving ownership of any assets, arguing disputes in a court of law, and even sorting out inheritance matters. A bill of sale is never really legally binding as it is merely an expression of interest.
Lastly, these two documents differ in their contents. The bill of sale generally contains more details than the purchase or sale agreement. A purchase or sale agreement only has information about the stocks of interests, their quantity, and the cost of each item in the inventory.
Free business bill of sale forms
There you have it! It is now up to you to move on and make use of this document. As you may already have deduced, you cannot escape or get round this document at all. That is because it is mandatory in nature. You will also have to change the ownership of your business from time to time, won’t you?