Legal Question in Business Law in California

It depends on how the business is formed, such as whether it is a sole proprietorship with a fictitious business name, or a corporation with shareholders.

In addition to what Mr. Roach said, you want to also consider how intellectual property (if any) vital to the business is currently being held.

What exactly do you want to transfer? You say "the name of ownership," which is confusing. Does the original owner want to sell the name of the business only, or does he/she want to sell the business itself?

If the intention is to sell the entire business, "lock, stock and barrel," then the next question is whether the business is a corporation, an LLC, a partnership, or a sole proprietorship. If it is a sole proprietorship, the current owner and the proposed new owner(s) would work out a contract for the sale of the business, hopefully each represented by an attorney familiar with business transactions. The old owner and the new owner(s) may need to re-file a fictitious business name statement with the county. Other documents that might need attention would include the state reseller permits and local business license.

If the business operates as an artificial entity such as a corporation or LLC, there is a choice between selling the business assets and liabilities and retaining the entity, or selling the entire entity. In other words, if it is a corporation, the selling owner can either sell 100% of the corporate stock to the buyer(s), or can sell the business assets and liabilities, while retaining the corporate shell; or perhaps sell most of the assets and liabilities, retaining the corporate shell plus selected assets and liabilities.

There are many other ramifications of transferring ownership of a business, and they increase in number and complexity as the number of possibly-affected parties and agencies increases. Are there employees? What will customers think of the new owner(s)? Did the selling owner give any personal guarantees? How about the bank accounts and loans?

If this is anything beyond the simplest and smallest of sole proprietorships, I'd recommend retaining a business attorney to consult and document the deal.