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Form 4797 is a tax form distributed by the Internal Revenue Service (IRS). Form 4797 is used to report gains made from the sale or exchange of business property, including property used to generate rental income, and property used for industrial, agricultural, or extractive resources.
You must prepare a sales agreement to sell your business officially. This document allows for the purchase of assets or stock of a corporation. An attorney should review it to make sure its accurate and comprehensive. List all inventory in the sale along with names of the seller, buyer, and business.
The legal documentation for your business must be meticulous. This includes all contracts, agreements, and licenses that your business holds. Every contract, from supplier agreements to customer contracts, should be reviewed to ensure they are in good standing and transferable to a new owner.
Work with a financial professional to determine how you want to invest or otherwise use the money you make from the sale of your business. Identify Your Reasons for a Sale. Decide on the Timing of the Sale. Get a Business Valuation. Hire a Broker. Prepare the Necessary Documents. Find a Buyer. Handle the Profits.
How To Write a Business Purchase Agreement Identify the Parties. Describe the Business. Outline the Financial Terms. Elaborate the Terms of Sale. Describe the Covenants. Clarify the Transfer Process. Provide Closing Details.
Legal and tax considerations enter into selecting a business structure. Sole proprietorships. Partnerships. Corporations. S corporations. Limited liability company (LLC)
Table of Contents show 1.1 Identify Why You Are Selling. 1.2 Identify What You Are Selling. 1.3 Hire a Team. 1.4 Get Your Documents in Order. 1.5 Have Your Business Appraised. 1.6 Create a Marketing Strategy. 1.7 Create a Negotiation Strategy.