I am changing ownership from an 1120S to a sole member LLC.
The new owner is the same as the previous owner, just a different form of business.
The new business has an EIN number already.
The 1120S has assets and Liabilities, including an outstanding bank loan.
The creditor (Bank) wants proof of change in the form of a Bill of Sale.
Do I fill out a business purchase agreement or a business transfer agreement to satisfy the Bank's request?
The Bank is unclear as to the exact terminology; The Bank's legal department terminology is somewhat different then accounting and/or tax terminology.
Do I list an amount for purchase, treat it as a transfer (no amount) or list $1.00 for the purchase price?
Thank You
The new owner is the same as the previous owner, just a different form of business.
The new business has an EIN number already.
The 1120S has assets and Liabilities, including an outstanding bank loan.
The creditor (Bank) wants proof of change in the form of a Bill of Sale.
Do I fill out a business purchase agreement or a business transfer agreement to satisfy the Bank's request?
The Bank is unclear as to the exact terminology; The Bank's legal department terminology is somewhat different then accounting and/or tax terminology.
Do I list an amount for purchase, treat it as a transfer (no amount) or list $1.00 for the purchase price?
Thank You
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