| Selling a Business in Oakland, California | What sellers should know Selling a Business in Oakland, CA This page is provided for business owners in Oakland who are either considering selling their business or who have already started the process of selling their business. I have limited the information to Oakland specific topics, please view my selling page for general information regarding the selling your business. Whether you are using a business broker or have decided to sell your business yourself (FSBO), I'm sure this information will be helpful.
Disclaimer: Main Street Business Brokerage is providing this information as a service to Oakland’s Business Community to increase to their knowledge some of the local and state agencies they will need to contact when selling their business. All information has been collected from sources deemed reliable, but Main Street Business Brokerage makes no representation or warranties to its accuracy. Users of this information agree to double-check all information with the proper agencies and to personally examine the same. General Information about Oakland
Businesses in Oakland grouped by industry
Selling a Restaurant, Bar, Tavern, Nightclub, or Liquor Store in Oakland Alcoholic Beverage Control (ABC) may refuse to issue a license to any person who has violated ABC related laws, has a criminal record, or is otherwise disqualified. It’s very important to ensure your buyer will be approved by ABC early in the process. Also, if your buyer has plans to renovate the location, ABC should be informed since they may be able to provide options to expedite the process.. Time is an important factor when transferring a license. You should plan on a minimum timeframe of 30 days, although the average time for approval is 55-65 days. However it is possible to have the buyer apply for a temporary license which is good for 120 days. Be aware both the seller and buyer will be required to go the local ABC office in person (address provided below). It is the Seller’s responsibility to:
Local Department of Alcoholic Beverage Control (ABC) ABC Headquarters All food establishments are required to obtain a health inspection prior to a business transfer; the cost will average around $120 per hour. Alameda County Environmental Health Office Is the Business sale subject to the Bulk Sale Law? The Bulk Sales Law applies to a bulk sale if both of the following conditions exist:
Check with your escrow agent if you need help determining whether your business is subject the Bulk Sale Law. If your buyer will be establishing a corporation, S corporation, Partnership, or Limited Liability Company, they must register with the Secretary of State. (916-657-5448, www.ss.ca.gov/business/business.htm) When transferring the business and the buyer plans on keeping the same company name, the seller should file a “Statement of Abandonment of use of a Fictitious Business Name Statement”. Shortly afterwards the buyer should file a “Fictitious Business Name Statement”. If the buyer plans on changing the business name then only a “Fictitious Business Name Statement” is required. Alameda County Clerk's Office The new owner will have to apply for a business license. Here is a link for the application and business tax rate information: http://www.oaklandnet.com/government/b_and_f1/revenue/revtax.html Wholesale and retail businesses should apply for a seller’s permit from the California State Board of Equalization (510-622-4100, www.boe.ca.gov ) Selling a Retail Store in Oakland California law requires a buyer to record and publish advance notice of the sale. Further, in a small cash sale of not more than $2,000,000, the buyer or escrow agent is authorized to impound and control the distribution of the proceeds, and must apply the sale proceeds to the seller's debts before paying the seller. Talk to your escrow agent or business broker to confirm whether your business is subject to the Bulk Sale Law. If your buyer will be establishing a corporation, S corporation, Partnership, or limited liability company, they must register with the Secretary of State. 916.657.5448 www.ss.ca.gov/business/business.htm When transferring the business and the buyer plans on keeping the same company name the seller should file a “Statement of Abandonment of use of a Fictitious Business Name Statement” shortly afterwards the buyer should a “Fictitious Business Name Statement”. If the buyer plans on changing the business name then only a “Fictitious Business Name Statement” is required. Alameda County Clerk's Office The new owner will have to apply for a business license. Here is a link to the application and business tax rate information. http://www.oaklandnet.com/government/b_and_f1/revenue/revtax.html Selling a Service-Related Business in Oakland Make sure your buyer applies for and secures any special licenses that may be required for your particular business, i.e., State Board of Dry Cleaners, Cosmology, etc. Is the business sale subject to the Bulk Sale Law? If your business is just selling its services and does not sell inventory then the answer is no. When a business has little inventory and is primarily a service business then you will want to check with your escrow agent, since you may not be subject to the “Bulk Sale Law. If your buyer will be establishing a corporation, S corporation, Partnership, or Limited Liability Company, they must register with the Secretary of State (916-657-5448, www.ss.ca.gov/business/business.htm ) When transferring the business and the buyer plans on keeping the same company name, the seller should file a “Statement of Abandonment of Use of a Fictitious Business Name Statement”. Shortly afterwards the buyer should file a “Fictitious Business Name Statement”. If the buyer plans on changing the business name, then only a “Fictitious Business Name Statement” is required. Alameda County Clerk's Office The new owner will have to apply for a business license. Here is a link to the application and business tax rate information: http://www.oaklandnet.com/government/b_and_f1/revenue/revtax.html |
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