Changing ownership...

[SandiGirl]

How much of a pain is it when buying/selling and existing salon? Tax numbers, name transfer, bank accounts for the debit/credit machine...?

[rcknep3]

u selling? I just bought mine 2 months ago but in the US. It was pretty simple but if the owner came across shady Id have probably had to deal with more. I've dealt with legal contracts in my previous job so no lawer for me, but don't rec that. Setting up the actual company and tax stuff was easy....most is online now, CC machine and bank account was a snap. I did my purchase as an asset purchase so no liabilities. Just be clear on what is what, I think I lost about $200 of lotions the owner returned but I'm not sure....also had some non working items that I replaced...I didnt verify they worked. I'd say it was maybe a total of 2 days of work for me to set up/transfer. Plus I got the owner to finance 2/3 of the purchase at like no interest.....if something is not straight, I have that to hold above him.

[theislandtan]

Originally Posted by rcknep3

I did my purchase as an asset purchase so no liabilities.

Same here. The purchase part was real easy.

[Tanning Queen]

Same as what I did.

[MR.TANLINES]

not hard at all..a handful of phone calls thats it.

[Kathe]

Sandi, we've sold 2 salons. It's pretty easy but you have to make sure you are covered on a few things, especially your credit card processing. If you are thinking about doing this you should talk to my hubby cause he handled all of the paperwork required and both went very smoothly.

[Island Cove]

in canada, the new owner sets up their own bank acounts and gets there own debit mashine. If you are buying another business, you'd be surprised how many people don't use their "doing business as" name as their operating name, Take my vic salon. Its legal name is Island cove sun spa. so do a search and see if that name is even taken. If you are selling, the new owners can get their own name, any name for that matter, it could be "DeVore holdings" and just use your salon name as "doing business as" no need to transfer the name.

you could call your salon sandygirls tanning pallace on the sign, and not register that name, but your business name would be the registered name.

[Island Cove]

this post should be in the canadian forum as things are done differently in Canada than in the US.

[rcknep3]

yeah, I would not have a clue if these are the same. US is pretty easy but in terms of trademarks it can get sticky using an existing name depending on the location to another.

[SandiGirl]

Originally Posted by Island Cove

in canada, the new owner sets up their own bank acounts and gets there own debit mashine. If you are buying another business, you'd be surprised how many people don't use their "doing business as" name as their operating name, Take my vic salon. Its legal name is Island cove sun spa. so do a search and see if that name is even taken. If you are selling, the new owners can get their own name, any name for that matter, it could be "DeVore holdings" and just use your salon name as "doing business as" no need to transfer the name.

you could call your salon sandygirls tanning pallace on the sign, and not register that name, but your business name would be the registered name.

I basically just need stuff transferred from his name to mine. If I have power of attorney on the accounts, I wonder if we can just add my name and remove his, that way the account stays the same for the CC machine. Same with the business name...just put it in my name. What about the GST/PST numbers?

[sunsally]

In the U.S. at least, when changing owners you really are completely changing the "contracts".

For example - most landlords will pull your credit before assigning a lease to you. If the original credit was on you and your husband and now you want the lease to be just for you, they may or may not be agreeable. MOST would (why kick a tenant out??). But obviously the situation changes, they now have one person to guarantee the lease contract rather than two, etc.

Ditto for utilities (who run your SSN to determine credit worthiness, which can impact how much security deposit they have you put down).

Talk to your attorney. They'll know exactly what is required and should be able to do it all fairly simply. It is important to do, since being "on" a business ties you to a variety of obligations, liabilities AND benefits. YOU will want all the benefits, and he will no longer want to be at risk for any liability or obligations. When you do it, make sure any outstanding obligations (e.g. taxes) are clear. Also, may want any future liabilities (e.g. someone sues you for something that happened two years ago when he was still on the business) to still be his responsibility.

[SandiGirl]

It's already my salon, I just need to get his name off of the things I mentioned above. The utilities have always been in my name, the lease is now in my name, it's just the business name and tax number that I'm wondering about.

[sunsally]

Again, in the U.S. some things may be in "your name" but in reality, are secured by the business - which is in both names.

Because of the obligations and liabilities tied to the "business name" - I'd consult an attorney to make sure you don't miss anything.

[SandiGirl]

Okay, nevermind.

[Island Cove]

it would also make a difference if it was a partnership on a limited company.

[Din]

Call Ontario Business Connects and get them to change the names on the ownership. They'll send you a new business vendors permit. Etc...

[SSmith]

Ok first you need to transfer the registered business name into your name, you can go to BC Online https://www.corporateonline.gov.bc.c...tml/index.html
to do that but you will need his password and user name or see a lawyer and they will process it for you, this will cost you more.

Then go to the bank with the new doc's that you can print off on the site and the old owner and get the business account changed into your name. In regards to the merchant, you will need the new business doc's with your name and he will need to contact them via phone and in writting that you are taking over the account.

Hope this helps. PM if you have more questions

[SandiGirl]

Apparently because it's a sole proprietorship in his name, I can go get the same name. He doesn't even have to dissolve his. Bizarre. BUT, just because I register the name, doesn't mean I go go changing things right? I'd need a letter from him or a bill of sale (or transfer)?

[SSmith]

Correct.. Did you have a lawyer handle the purchase? If you have a copy of the contract then you can take that to the bank

[SandiGirl]

No purchase...just need to get it in my name.