Fit Small Business: Get Your Business Into Shape! › Forums › Small Business Finance Forum › When you sell your business what paperwork do you keep for the new owners? › Reply To: When you sell your business what paperwork do you keep for the new owners?
The paperwork you keep is going to depend on how you sold your business. Was it a stock sale or an asset sale? If it was a stock sale then you need to keep everything for them. They’re buying the rights to take over the business as-is and might need the documents later.
If it was an asset sale then that’s a bit different because they’ll be taking over the operations of the business with a new legal entity. In that case you’ll only be required to hand over key documents necessary to running the business (like financials, supplier lists and contracts, etc..). Depending on your state you may not be allowed to hand over any employee files or documentation. The new legal entity will need to hire each of your employees into their business, even though they’ll be doing the same thing for the same wage. There are laws in place that protect the employees from having their personal information shared without their consent.
I hope that helps!