So basically I'm retiring and want to give (yes give not sell) my practice to a friend who currently works with me.
My main concerns are getting it over with cuz I want to move, and obviously making sure I don't have liability.
Is there any quick reference/website etc you can point me to that will give me some tips on what to do, how to do it. Since there isn't a sale I'm hoping its a bit easier, less paperwork etc. Do I need to involve a lawyer or can we do this ourselves with the right legal forms? I need to transfer a business credit card into her name but she has no business credit and bad personal credit. With a change of ownership, will this be a problem in putting her name on it and taking my name off?
As much info as you can give me would be great!
TIA!
How do I give away my business?
well, tia
I have no clue where you're located--but-- in the U S A there is a STRONG cause for you to NOT be GIVING this business to your friend without SOME compensation--- otherwise she will incur some extremely heavy taxes on the assets that she acquires as it will be viewed by the tax people as a GIFT and gifts of any sizeable amount can very easily be taxed and taxed hard in certain jurisdictions !!!
My suggestion to you would be to do a SALE but to make the compensation --- something like twenty dollars or so---a nominal amount but yet--- compensation none the less and it removes the GIFT thing from the table !!
Next-- you really should get a lawyer-- and do a very simple bill of %26quot;sale%26quot; on this transaction--- surely you could find one that is honest within driving distance of you somewhere (??) --- This Bill of Sale should be simple but thorough and state that you are releasing all rights and priviledges AND SHE is assuming all liabilities and assets !! The charges for a simple sale like this should also be nominal !!
Major deal here though !! With bad personal credit and no business credit--- your friend will have absolute hell on earth assuming YOUR business credit card account---- a much wiser deal here would be for her to approach getting a card on her own for the business once the transfer OF the business is done--- for THEN she will have %26quot;added value%26quot; and %26quot;asset%26quot; on which a credit card company can bank on the return of the credit that they extend !!!
Hopefully there are things in this that you can use --- and I am wishing you a very happy retirement--- I'm sure you have earned it !!! And, Good Luck to BOTH of you in your new lives !!!!
How do I give away my business?
Why are you giving your business away?? Does it make money?? Email me and I can help: dio3@hotmail.com
Contact a local attorney, and ask them about a Quick Claim Deed. Most will give you the information for free, in hopes of getting your account. I suggest that you never sell or purchase property without the benefit of an attorney. Real Estate Agents are not help liable, in the event of an error, where attornies are.
Good Luck, and God Bless!
