Guide to Bill of Sale Forms

Whether your business sells handmade soaps or used office equipment, you should document transactions in writing. You need a bill of sale, a legal document that shows ownership was transferred from the seller to the buyer. It can also be used as an agreement for the sale of goods or as a sales receipt.

Three things you need to know:

1. The buyer should keep the original bill of sale; the seller should keep a copy.
2. A bill of sale can protect the legal rights of both buyer and seller.
3. It is valuable to have as a tax and accounting document.

Action Steps
The best contacts and resources to help you get it done

Download legal forms from the Web

You can find almost every type of legal form on the Internet, forms that have been prepared by attorneys or approved by them. Most Web sites have a search-by-state feature.

I recommend: FindForms.com has more than 10,000 forms, including bill of sale forms for automobiles, horses, motorcycles and personal property. BillOfSale.us offers a wide range of customized bill of sale forms for different types of purchases. Law Depot offers info on how bill of sale forms are used, along with forms to download.

Preview forms and make changes

Most Web sites allow users to look at forms – or sections – before buying. Some also have bilingual forms in both Spanish and English.

I recommend: USlegalforms.com has state-specific forms, including bilingual ones, available to purchase for download in a variety of formats.

Save time by filling out forms online

While most Web sites offer both downloadable forms and snail mail versions for a few extra bucks, some allow you to fill out all your specific information online, preview it and then print.

I recommend: At LawDepot.com, answer the questions online, and then print your complete legal document.

Make your paper forms work digitally

Special software lets you convert paper forms into digital forms that you can complete and print on your computer.

I recommend: OmniForm, from the software company Nuance, is a best-seller among personal forms management software. It lets you quickly turn paper forms into digital forms, or create new digital forms from scratch. It comes with a set of pre-designed templates to facilitate the creation of new forms.

Comparison shop for forms

Although most forms are similar – especially the general bill of sale forms – prices do vary, so be sure to check prices of the various Web sites selling legal forms.

I recommend: Go to BillofSale.us, for attorney-approved sample forms at a bargain basement price of $4.99. AllBusiness.com has a bill of sale for personal property and motor vehicles for $15; for equipment, $25.

Tips & Tactics
Helpful advice for making the most of this Guide

• Do not give the bill of sale to the buyer until you have received full payment.
• When selling goods "as-is without any warranties," you are not guaranteeing the quality nor will you be held liable for any imperfections or flaws in the products you're selling.
• If equipment has a serial number, include it in the description in the bill of sale.