Can business name be sold?

[justbeach03]

I am selling my business and the buyer wants to know if the name can be sold as an asset along with the actual furniture assets, so he can use it. Filing personal chap 7- non consumer.

[HHM]

Yes. The name is an asset like any other (okay, technically, it is an intangible asset). But, yes, it can be sold.

[justbeach03]

if they take on the new- do they also incur the debt associated with the name? That has been the confusion. If the business has secured assets that are sold (money is used strictly to pay them) and the name is sold, business technically looks like it changed hands. So, would the new owners incur the liablilty?

[justbeach03]

obviously they would not be sold the corporation-just the assets and would have their own business structure

[MarkM]

The question I think you are really asking is with respect to the issue of "successor liability". The answer depends heavily on state law (and to some extent what federal circuit you are in). If, for example, you owed money to a union pension fund in the 6th circuit (i.e. Michigan), the odds are pretty good that the courts in that circuit will tend to find that the asset purchaser who is using the assets of the old business, who is still selling the same product lines and where the name of the old business has not changed ... despite the fact it was an asset sale with notice, the purchaser is likely to be found a successor in interest ...

Indeed, I had a case in the 6th circuit where the assets were purchased out of a bankruptcy proceeding "free and clear" and the union was not completely unsuccessful in chasing the successor entity.

Outside of the union context, however, successor liability is far more difficult to prove where there has only been an asset sale.

Bottom line -- talk to an attorney in your jurisdiction about your specific question.

[justbeach03]

Thanks for the advice. Think I'll just sell the assets. Not like I would get to keep any of the "business name" money anyway.

[Flowers]

There is a value on the business name - and selling it insures that you as the current owner can not open up the same business and continue to make money on the good will that was established under that name.

Depending on the business/name, start at $1 and go up from there!
what's he willing to pay? ? ? is the question.

[maymay]

i think you should sold it..