New Hampshire Agreement for Sale of Business by Sole Proprietorship with Leased Premises

State:
Multi-State
Control #:
US-02022BG
Format:
Word
Instant download

Description

This form involves the sale of a small business where the real estate on which the Business is located is leased from a third party. This form assumes that the Seller has received the right to assign the lease from the lessor/owner.

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FAQ

Overview. A sole proprietorship cannot be sold as a single entity like a corporation. Instead, when a sole proprietor sells the business, the sale is treated as the sale of the separate and identifiable assets of the business. The sale of a disregarded entity is also treated as the sale of the entity's assets.

A sole proprietorship cannot be sold as a single entity like a corporation. Instead, when a sole proprietor sells the business, the sale is treated as the sale of the separate and identifiable assets of the business.

Asset Sale ? Capital Gains Tax Capital gains tax is the proceeds of your asset sale minus the original cost. You'll pay tax on the capital gain or loss on the assets sold. Here's a quick equation: Sale price ? purchase price = net proceeds.

Sole proprietorships do not produce a separate business entity. This means your business assets and liabilities are not separate from your personal assets and liabilities. You can be held personally liable for the debts and obligations of the business. Sole proprietors are still able to get a trade name.

Sole proprietors and partners pay themselves simply by withdrawing cash from the business. Those personal withdrawals are counted as profit and are taxed at the end of the year.

A sole proprietorship is a non-registered, unincorporated business run solely by one individual proprietor with no distinction between the business and the owner. The owner of a sole proprietorship is entitled to all profits but is also responsible for the business's debts, losses, and liabilities.

A sole proprietor is someone who owns an unincorporated business by himself or herself.

As there is no separate entity under the law for a sole proprietorship business, contracts are normally signed by owner under his or her personal name. Even if the business uses a fictitious name, the owner will usually have his or her name written down in the checks issued by the clients.

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New Hampshire Agreement for Sale of Business by Sole Proprietorship with Leased Premises