About this Form: A bill of sale for the assets of a small business: the tangible personal property listed on Schedule A (furniture, equipment, inventory) plus the business’s goodwill. It records the sale, states the price and allocates it between tangible property and goodwill, carries the seller’s warranty of title (not of condition), and — if the parties fill it in — a non-compete covenant. It does not transfer stock or membership interests, real estate, contracts that require counterparty consent, licenses, leases, government-registered intellectual property, or the seller’s debts — the instructions explain what needs its own document. Your download includes the fillable Word document and the Instructions & Legal Notes guide. If the buyer is paying over time, pair this bill of sale with our
Promissory Note (fixed-payment or balloon) and
Security Agreement; the instructions explain the options. Fillable fields work best in Microsoft Word.
Bill of Sale of Business
(Sale of Business Assets, Including Goodwill)
STATE OF
______________________, COUNTY OF
______________________
1. DATE OF SALE AND PARTIES.
Date of Sale:
_______________________.
SELLER — FULL LEGAL NAME
_____________________________________________ STREET ADDRESS
_____________________________________________ CITY, STATE, ZIP
_____________________________________________ | BUYER — FULL LEGAL NAME
_____________________________________________ STREET ADDRESS
_____________________________________________ CITY, STATE, ZIP
_____________________________________________
2. PROPERTY SOLD. For the purchase price stated in Section 3, receipt of which Seller acknowledges, except any unpaid portion described in the Additional Terms section, Seller sells, transfers, and conveys to Buyer:
1. All and singular, the goods and chattels, property, and effects listed in Schedule A attached to this Bill of Sale, which is incorporated into and made part of this Bill of Sale; and
2. The whole of the goodwill of the ________________________________ business operated by Seller that is the subject of this sale.
Seller delivers possession of the Schedule A property to Buyer on the Date of Sale.
3. PURCHASE PRICE AND ALLOCATION. The total purchase price is $___________________. The parties allocate the purchase price as follows:
Tangible personal property (Schedule A items) | $
____________________
Goodwill and going-concern value | $
____________________
Total purchase price | $
____________________
The parties intend this allocation to govern for tax-reporting purposes. Allocating price between tangible property and goodwill affects how each party reports the sale — see the instructions.
4. SELLER’S TITLE WARRANTY. Seller warrants that the goods, chattels, and goodwill sold are free and clear of all encumbrances, except any lien or encumbrance disclosed in writing in the Additional Terms section; that Seller has full right and title to sell them; and that Seller will warrant and defend them against the claims and demands of all persons.
5. NON-COMPETE COVENANT. Seller covenants that for ____________ years from the Date of Sale, Seller will not engage in the business of ___________________________________ within ________________________________________ (geographic area).
Fill in all three blanks (years, business, geographic area), or leave this entire section blank if the parties do not want a non-compete covenant — a partially filled covenant may be indefinite and unenforceable. Whether a non-compete covenant is enforceable depends on the law of the governing state — see the instructions before relying on it.
6. ADDITIONAL TERMS.
_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
7. GOVERNING LAW. This Bill of Sale is governed by the laws of the State of ______________________, without regard to conflict-of-laws rules.
8. SIGNATURES.
The parties are signing this Bill of Sale on the Date of Sale first written above (or on the date written next to each signature). If the Schedule A property is owned by more than one person as co-owners, each co-owner must sign as Seller — additional signature blocks go on a duplicate original. If Seller is an entity (corporation, LLC, partnership), one authorized officer, manager, or partner signs in a representative capacity, with their title on the signature line.
Each party should sign two identical originals and keep one.
SIGNATURE OF SELLER PRINTED NAME OF SELLER DATE SIGNED | SIGNATURE OF BUYER PRINTED NAME OF BUYER DATE SIGNED
9. WITNESS (RECOMMENDED). The undersigned witness watched the Seller and the Buyer sign this Bill of Sale. A witness is recommended because, for property that has no government title certificate, this Bill of Sale is the primary evidence of the transfer.
SIGNATURE OF WITNESS PRINTED NAME OF WITNESS
10. NOTARY ACKNOWLEDGMENT (OPTIONAL UNLESS REQUIRED).
A bill of sale of business assets is generally valid without notarization. Notarizing the Seller's signature adds proof of the transfer and is recommended for high-value sales.
STATE OF
______________________, COUNTY OF
______________________.
On
___________________, before me, the undersigned notary public, personally appeared
_____________________________________, known to me (or proved to me on satisfactory evidence) to be the person whose name is signed above as Seller, and acknowledged to me that they signed this Bill of Sale for the purposes stated in it.
WITNESS my hand and official seal.
NOTARY PUBLIC SIGNATURE | My commission expires:
_________________ [ Notarial seal ]
SCHEDULE A — PROPERTY INCLUDED IN THIS SALE
List every item of movable tangible personal property included in the sale (furniture, equipment, inventory, vehicles — any titled vehicle should also be transferred on its own title paperwork). Do not list building fixtures that are part of the real estate; trade fixtures on leased premises may need the landlord's consent. Attach extra sheets if needed.
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What’s included in this package:
- Bill of Sale of Business — fillable Word (.docx)
- Bill of Sale of Business — Instructions & Legal Notes — Word (.docx)
The Instructions & Legal Notes cover:
- 1. What this form is
- 2. How to complete it
- 3. Price allocation (why it matters)
- 4. The non-compete covenant — read before relying on it
- 5. Legal notes & citations
- 6. Related PublicLegal forms
