When you sell your sole proprietorship business you are actually selling what?

When selling a sole proprietorship business, you are primarily selling the assets of the business. This includes tangible assets such as equipment, inventory, and real estate, as well as intangible assets such as customer lists, trademarks, and any proprietary processes or intellectual property the business might own. The overall value of the business is often reflected in its assets, as these are what the buyer is acquiring to continue operations and generate revenue.

While other aspects, like the business name, liabilities, or goodwill, can play a role in the overall transaction, they do not represent the primary element being sold. For example, the business name might still be used as part of the brand identity, but it does not encompass the operational capacity of the business. Similarly, liabilities, such as debts or obligations, may or may not transfer depending on the specifics of the sale agreement, and goodwill represents the reputation and customer relationships that have been developed over time but is not a tangible asset that can be easily separated from the physical and operational components of the business itself. Thus, the focus of the transaction is on the sale of the assets.