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Alabama Business Bill of Sale

Alabama requires a bill of sale in common situations, such as when the title does not show the purchase price. Fill in the form below and download a free, one-page Alabama business bill of sale PDF that includes everything the Alabama Department of Revenue looks for. Nothing you type leaves your browser.

Alabama
Business Bill of Sale

Seller

Buyer

Business details

Price and terms

How to sell a business in Alabama

A business bill of sale transfers the tangible and intangible assets of a small business, such as equipment, inventory, furniture, the trade name, customer list and goodwill, from the seller to the buyer at closing. It is the document that goes with the purchase agreement and is what the buyer shows to banks, landlords and the state when the business changes hands.

Seller steps

  1. Confirm you hold clear title. If a lender is on the title, get the lien release before you list it.
  2. Agree on the price and fill in the Alabama business bill of sale above with the buyer. Record the serial number.
  3. Both parties sign and each keeps a copy. Alabama does not require a notary.
  4. Hand over any registration papers, manuals, receipts or health records that go with the business.
  5. Hand over the business and keep your signed copy of the bill of sale for your records.

Buyer steps

  1. Check the description against the business itself before you sign.
  2. Keep the signed bill of sale with your records; it is your proof of ownership and purchase price.
  3. If you bought it for a business, give the bill of sale to your bookkeeper for the asset record.

Before you sign

  • Attach an inventory and equipment list as a schedule for anything beyond a one-line description.
  • Say clearly whether the buyer assumes any debts, leases or contracts.
  • Both parties sign in their capacity (owner, member, president) if an entity is involved.
  • This is the bill of sale, not the purchase agreement. For a sale above a few thousand dollars, have a lawyer draft the purchase agreement and use this as the closing document.

Why a bill of sale matters for a business

  • Transfers the assets at closing in one signed document.
  • Lists exactly what is and is not included, which prevents post-sale fights.
  • Needed to transfer the DBA, licenses, lease and utility accounts.
  • Supports the buyer's asset basis for taxes and the seller's gain calculation.

Want both parties to walk away with a signed copy and a notary page ready? The $9 ready-to-sign pack adds them.

Alabama at a glance

Bill of sale
Required in common cases
Notary
Notarization optional
Official state form
None published; any signed bill of sale is accepted
Where the buyer registers
Alabama Department of Revenue (www.revenue.alabama.gov/motor-vehicle)
Buyer's deadline to title
20 days from the sale
License plates
Stay with seller

Alabama requires a bill of sale for vehicles not subject to the title law (1975 and older), and the buyer must keep a copy in the vehicle during the first 20 days; county licensing offices also use it to figure sales tax when the title shows no price. A license plate must be obtained within 20 calendar days of purchase. Plates stay with the seller.

Checked October 2026 against the state's own guidance. Rules change; confirm before you file.

Other Alabama forms

Business Bill of Sale in other states

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Alabama business bill of sale questions

Is a bill of sale required to sell a business in Alabama?+

Alabama requires a bill of sale in common situations, such as when the title does not show the purchase price. Alabama requires a bill of sale for vehicles not subject to the title law (1975 and older), and the buyer must keep a copy in the vehicle during the first 20 days; county licensing offices also use it to figure sales tax when the title shows no price. A license plate must be obtained within 20 calendar days of purchase. Plates stay with the seller. Alabama has no mandatory form, so any complete, signed bill of sale like the one generated here is accepted.

Does a Alabama business bill of sale need to be notarized?+

Alabama does not require notarization. Two signatures are enough. If you want extra certainty, the ready-to-sign pack includes a notary acknowledgment page you can use anyway.

Does the buyer need to file a business bill of sale in Alabama?+

No. Businesses are not titled or registered with the state, so there is nothing to file. The signed bill of sale is the ownership record; each party keeps a copy.

Is a business bill of sale the same as a purchase agreement?+

No. The purchase agreement sets the deal: price, terms, representations, non-compete. The bill of sale is the closing document that actually transfers the assets. Small deals sometimes use the bill of sale alone; larger ones should have both.

Does it transfer the LLC or corporation?+

No. This transfers assets. Selling the entity itself is a membership-interest or stock sale and needs different documents. Most small-business sales are asset sales.

Do I need to notify the state?+

Usually the DBA (assumed name) and any licenses or permits have to be reassigned or re-filed, and some states have bulk-sale notice rules. Check with the secretary of state and your accountant.