Making a change in business ownership is a lengthy and complex process, even for a simple business sale.
Businesses can be sold to an individual or company outright or sold by allowing the buyer to make payments. Depending on the type of business, the new owner may need to apply for a Texas sales tax and use permit. You may choose to accept one lump sum as payment, or you may accept payment in installments. If you take payments from the potential owner, you may agree to allow them to operate the business while installments are made. But ownership usually is not transferred until the final payment is made. You and the buyer also may come to a different sales agreement that works for both parties.
You must cancel your sales tax and use permit with the Texas comptroller if your business involves the sale or lease of tangible personal property or you sell taxable services.
The help of an attorney can be invaluable as you proceed. Assuring the correct procedures are followed will prevent problems during and after the ownership transition.