As per Lawkidunya, assets of the proprietor and proprietorship firm are same. It will not be considered as sale. According to law, being the single owner of the business a person can transfer his sole proprietorship to his son , specially the firm is not registered by way of Gift Deed or Gift Settlement Deed as well.
Is It Easy to Sell a Sole Proprietorship
As per Lawkidunya and if we consider as legally it is easy to sell a sole proprietorship, but there are very few requirements when creating or selling a sole proprietorship.
A sole proprietorship was designed to have only one owner. Therefore, when the owner dies or the business is sold, the structure automatically dissolves. A sole proprietorship cannot be transferred to another party.
Can a Family be a Sole Proprietorship
As per Lawkidunya, spouses electing qualified joint venture status are sole proprietors for federal tax purposes. Each spouse must file a separate Schedule C to report their share of profits and losses.
They don’t need an EIN unless their sole proprietorship must file excise, employment, alcohol, tobacco or firearms returns.
Can I Transfer My Sole Proprietorship to My Wife
As per Lawkidunya, the question is that can i transfer the sole proprietorship to my wife, then legally everything can be transferred to the proprietorship firm of your wife(once the same is incorporated) on a deed of assignment.
For getting the proprietorship firm of your wife incorporated and to get this transfer done under a Deed of Assignment, contact a local lawyer/CA/CS.
How Do I Transfer a Sole Proprietorship Business
As per Lawkidunya, a takeover agreement or sale agreement needs to be entered into between the sole proprietor and company.
The Memorandum of Association (MOA) needs to carry the object “The take over of a sole proprietorship”.
All the assets and liabilities of the sole proprietorship must be transferred to the company