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Ely, Counselor at Law
Category: Legal
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Experience:  Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
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We are owners of a small C Corporation incorporated in the

Customer Question

We are owners of a small C Corporation incorporated in the State of California. We are considering transfering the ownership. We would like to know the legal requirements including forms that need to be completed and submitted to what agencies?
Submitted: 1 year ago.
Category: Legal
Expert:  Ely replied 1 year ago.

Hello and welcome to JustAnswer. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

1) Depending on the agreement, the seller and buyer sign a Asset Purchase Agreement (if this is an asset purchase) or a Stock Purchase Agreement (if this is a stock purchase). If there is a Stock Purchase Agreement, then a stock document is also signed over by the seller to the buyer.

2) The information is updated with the Ca Secretary of State. If amending the articles of organization, the buyer must use the California Secretary of State’s Certificate of Amendment form where the new list of LLC members is provided under Section 1C.

3) If the company sells fuel, tobacco, alcohol, or other taxable items, then the California State Board of Equalization also has to be updated (let me know if so so I can add on to my answer).

I hope this helps and clarifies. Please use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how experts get credit for our time. Rating my answer the bottom two faces/stars (or failing to submit the rating) does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith with a positive rating.