The contract of sale, which will specify the conditions of the deal, must then be prepared and signed. To ensure that all legal criteria are completed, it is crucial to have an attorney evaluate the contract. You must hand over ownership of the company to the buyer after the deal is signed. To accomplish this, submit the necessary paperwork to the Washington State Department of Revenue.
One thing to keep in mind is that there can be extra steps needed to transfer ownership if your company is set up as a limited liability company (LLC). To find out if there are any limitations on transferring ownership, you must review your LLC operating agreement. In order to reflect the ownership change, you might also need to file an amendment to the operating agreement. How do I use my LLC to pay myself?
You might be asking how to pay yourself if you are the owner of an LLC. One choice is to work for the LLC and accept a pay. Taking distributions from the LLC’s earnings is an additional choice. It’s crucial to keep in mind that taking distributions may have tax repercussions, so you should speak with a tax expert.
A “doing business as” (DBA) name is the name by which a company conducts its operations but which differs from the company’s legal name. The lack of legal protection for the business owner’s personal assets is one drawback of a DBA. Additionally, because it could be more challenging to demonstrate the identity of the business, choosing a DBA name can make it more challenging to get funding or sign contracts.
Your particular business demands and objectives will determine whether or not acquiring a DBA is worthwhile. A DBA may be required if you want to conduct business under a different name than your legal name. However, creating an LLC or corporation may be a preferable choice if you are worried about protecting your personal assets.
The answer is yes; such an LLC is referred to as a single-member LLC. Since single-member LLCs give the same legal protections as multi-member LLCs with less paperwork and formalities, many small business owners actually opt for them.