Closing is the main event, but a few things still happen afterward. Here's what to expect as the seller.
On closing day
- You sign the transfer documents and resign from your positions with the company (manager, member, officer, registered agent).
- The buyer's insurer files its liability coverage with FMCSA. Once it shows active, you can cancel your own policy.
- The escrow service releases the money to you, after paying any liens or payoffs.
What the buyer updates
Usually within about 30 days, the buyer:
- Updates the MCS-150 with new officers and contact details
- Files a new BOC-3 if the process agent changes
- Updates state filings, such as the annual report and registered agent
- Files IRS Form 8822-B to change the company's responsible party
- Changes the FMCSA portal and Login.gov access to their own
You may be asked to sign a few routine documents to finish these updates.
Your loose ends
- Bank accounts, fuel cards and factoring: close or move these before closing; the company's cash and receivables usually stay yours.
- Trucks and equipment: if they stay with you, remove the company name and USDOT number from any you keep running under a new company, and update their registration and insurance.
- Your own records: keep copies of the purchase agreement, closing documents and escrow statements.
- Taxes: talk to a tax professional about how the sale is taxed for you and what to file for the final period you owned the company.
Who is responsible for what
A good purchase agreement splits responsibility by date. You stay responsible for anything from before closing (accidents, claims, taxes, unpaid bills), and the buyer is responsible for the company's operations after closing. If something from before the sale shows up later, the agreement says how it's handled.
Holdbacks
If your agreement includes a holdback, that part of the price stays in escrow for the set period and is released to you if no valid claim is made.
Read next: How escrow works.
This guide is general information, not legal, tax or financial advice. Rules and forms change; check FMCSA and talk to a professional about your situation.