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What legal documentation is needed for a business sale?

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Answers (3)
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Focus Business Law Group
Orange County, CA

The answer to your question depends first on whether you are selling the stock or assets of the business, as the documents vary considerably. Second, it depends on the specifics of the transaction. For example, do you need to pay off existing debt, will there be seller financing, is the business currently occupying leased or owned space? I agree with the previous responses to your question that it is crucial to retain an attorney experienced in sales of businesses. I would be glad to provide additional input. Please feel free to contact me directly.

Apr 30, 2009
Steven St
World Business Partners, Inc
Los Angeles County, CA

In a typical business transfer in California the following documents can be used in a business sale. But you should still seek the advice of a competent attorney for any additional or subtraction of documents.


Purchase Agreement

Escrow Agreement

Bill of Sale

Amendment to Articles of Organization

Noncompete Agreement

Consulting / Employment Agreement

Consent of Landlord to Assignment of Lease

Landlord Estoppel Certificate

Assignment of Lease

Resolutions Authorizing the Transaction

Promissory Note

Security Agreement

UCC-1 Financing Statement

Deed of Trust

Personal Guaranty

Apr 26, 2009
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Owner of ABC EXPERTS a liquor license consulting company
Los Angeles County, CA

If your business has a liquor license, the sale and transfer of that license must first be approved by the State Alcoholic Beverage Control Department (ABC). You dont want to get a seller who is not qualified to obtain the license and unfortunately I have seen this much too often. Rene Guzman

Mar 27, 2009