- Office
- The business license or finance office of your city or county
- Filing
- A new business license or occupation tax certificate application from the buyer, and a closing notice from the seller
- When
- Ask before closing, since some offices want the sales contract or a closing statement
Watch for: Expecting the old license to carry over. Atlanta, Columbus and other places say licenses are not transferable and the new owner applies as a new business.
What an Occupation Tax Certificate Is
Many Georgia cities and counties charge businesses a local tax and give them a certificate or business license in return. Names differ, and the details are set locally.
The certificate usually names the owner, the address and the type of business, which is why it rarely moves to someone else.
What Local Offices Say
Atlanta's application says business licenses are not transferable and a new owner must apply. Columbus says its licenses are not transferable. Cobb County asks buyers to complete a new application when ownership changes.
Sandy Springs says that when ownership or the tax ID changes, you apply as a new business. A law firm's article makes the same point about most of Georgia.
What the Seller Does
- Tell the licensing office the business sold, and when.
- Ask whether the old license should be closed or lapses on its own.
- Find out if any tax for the year is still owed.
- Keep proof that you notified the office.
What the Buyer Does
The buyer applies for a new certificate in the business's name and often pays a fee. Some offices ask for the sales contract, a lease or proof of insurance.
If the buyer is an entity formed for the deal, apply in that entity's name and use its tax ID.
Why It Matters to the Price
A buyer who learns late that the license has to be reissued may ask for more time or a lower price. A small fee is not the issue. A gap in operations is.
Disclose the license type, the issuing office and the renewal date when you share your records. It shows buyers you have your paperwork in order.
Timing
A buyer who opens before the certificate is ready may be operating without a license. Ask the office how long it takes and whether a temporary permit exists.
Restaurants and stores should also read alcohol license changes, since the two licenses run on separate tracks.
Home Based and Mobile Businesses
A company run from a truck or a home office may still need a certificate where it is based and in places where it works. Ask each office, since the rules for contractors, vendors and online sellers differ.
Across Different Cities
A company with locations in two cities may hold two certificates. Count them early. See city markets for what owners in Georgia's five largest cities run into.
This page is general information and not tax or legal advice. Confirm the rules with your local office and your attorney, then request your valuation.