I am (finally) in the final stages of the transition where I become the sole owner of the practice. Currently, everything is in my partner’s name on all accounts since he is still the majority owner.
So, I am trying to come up with a list of all different companies that will need to be contacted as soon as the closing is complete, and here is my list so far:
1) All dental supply vendors
2) Utilities: Electric, Gas, Water
3) Phone company
4) TV/internet provider
5) Creating new business accounts at bank
6) ADP for payroll
Yes, #3 and #4 are currently separate, but I’m looking to change that.
My partner owns the building so just have to sign the lease for that.
So to be clear, there’s an entity which you own a percentage of and after settlement you will own 100% of that entity correct? You’re not forming a new entity, correct?
Currently I own 10% of the entity. Upon completion of the buy-out I will own 100% of the entity. I will not be creating a new entity. I will just be renaming it.
When you say everything is in your partner’s name, you just mean HIS name is used in the entitypractice name, correct?
Yes. All accounts are in his name.
What type of entity is it?
C-Corp but I will be making it into an S-Corp according to my accountant.
From talking to some of the vendors already, the creating of new accounts is not a problem; it’s just some paperwork to fill out on their end. I just want to try to have everything lined up ready to go so that once the closing is complete, the vendors can put all the information through; and I just want to make sure I’m not missing anyone on my list.
Ok, that’s clear now. So you’re keeping the corporation with the same ID number so all you’re doing is notifying everyone of the name change. If that’s the case, have a form letter ready to go with all the bills you’ll be paying over the next year that come to you in the old name.
You’ll also have to notify the IRS of the name change so it matches up with the TIN number. I believe the insurance companies will require a W-9 with the new name as well so they can match it up to the TIN# they have on file as well.