How to change proprietor
Vikram Patil
(Querist) 02 October 2014
This query is : Resolved
Dear all,
I am a sole proprietor of a trading firm. Can I make my brother proprietor and resign myself from the firm without changing my firm's registration?
Dr J C Vashista
(Expert) 03 October 2014
Being a propertor did you seek any licence, permit, registeration, meter, agency etc. in your name? If yes, arrange its substitution in your brother's name otherwise nothing except to handover the firm.
ajay sethi
(Expert) 03 October 2014
agree with DR Vashishta
Rajendra K Goyal
(Expert) 03 October 2014
All the necessary licenses have to be changed in Govt. record in the name of new proprietor.
Vikram Patil
(Querist) 05 October 2014
Thank you all of you for sharing information.
T. Kalaiselvan, Advocate 
(Expert) 07 October 2014
Well advised by experts, for further enquiries you may consult a local consultant.
malipeddi jaggarao
(Expert) 08 October 2014
A sole proprietorship business is the easiest form of business to start, but it can be one of the most complicated to sell to another party. Starting a sole proprietorship business involves no formal paperwork and no separate income tax return since, in the eyes of the Internal Revenue Service and state taxing agencies, the individual owner and the business are the same, which is exactly the problem in changing ownership -- legally and financially separating yourself from the business you have created and operated.
Most states require registration of a business name other than your own name. If you have operated your sole proprietorship under a "Doing Business As" (DBA) name, contact the state office where you registered the name. If you do not want the new owner to use the name, request and file a cancellation form. If you agree to allow the new owner to continue using the name, request a change of ownership form if available. Not all states allow a new owner to assume an existing DBA. Some states also require a public announcement of a change, usually in an approved newspaper. Even it is not required in your state, a public announcement is a good business practice and may help protect you from liability for any subsequent legal problems the new owner might have.
