How to legally sell a small business to family member?
We have a small retail business that my father runs. The business is currently under my name but now I’m buying a house and because of the mortgage, I would now like to transfer it to my father’s name.
So question is how can I legally transfer the business to his name? I don’t want to go through a broker and take it through escrow, etc. Please help…
About the business: its a clothing store, location is in a mall, rented. All store information is under my name.
Thanks in advance.
Tagged as: buying a house · clothing store · escrow · mortgage · retail business · store location · thanks in advance
You can have your bank draw up the paperwork for you at little or no cost.
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I have seen this "simple" transaction go awry so often it is frightening.
Hire a competent attorney to do the paperwork of servering you from all liabilities of the business and placing that with your father.
The few hundred dollars you spend (expensed to the business) will pay you back 1000 fold. I usually go the route of not using a lawyer any time I can get away with it. This is one time I would use a lawyer.
You have leases, suppliers, creditors, taxing agencies to deal with. Get it done right the first time.