The short answer
To sell a business in British Columbia, learn what it is worth, put your records in order, reach buyers confidentially, agree terms, let the buyer review your records, then close. In an asset sale, PST applies to taxable goods such as equipment, but not to goodwill. Your lawyer papers the deal and your accountant advises on tax.
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What are the steps to sell a business in BC?
Our process follows the same six steps in every province: learn what the business is worth, gather your records, reach buyers confidentially, agree terms, open your books to the buyer and close. BC adds its own tax and licence rules along the way.
- Find out what it is worth. Work out your owner earnings, then see where BDC's range for a small to medium sized business lands. Our guide on how many times profit a small business is worth walks through it.
- Gather your records. BDC says a buyer and the buyer's accountant should be given accountant prepared year end statements for at least the past three to five years. Add your tax returns, the lease, the equipment list, your contracts and your insurance. If you collect PST, add your PST returns.
- Reach buyers confidentially. Buyers first see a profile with the industry, the region and headline numbers. Names, addresses and financials follow only after a buyer signs a confidentiality agreement.
- Agree terms. Offers come together on a letter of intent, and you decide on every yes and every no. If your business holds a licence from Consumer Protection BC, you must tell it in advance that you plan to sell.
- Open your records to the buyer. This is due diligence. Documents open in stages, on the timeline the offer sets. Expect the buyer to ask about a PST clearance certificate and a WorkSafeBC clearance letter.
- Close. Your lawyer papers the deal, the conditions clear, and the money moves through a lawyer's trust account. Afterwards you update or close your CRA accounts, and if the directors change, a notice goes to BC Registries.
What is my business worth before I start?
Start with what it earns. BDC says the multiple for a small to medium sized business could range between three and six times EBITDA, and that it varies by industry and market conditions.
That is a general range, and your own number depends on how much of the business a buyer can keep when you leave. Our guide on how many times profit a small business is worth explains owner earnings and what moves a multiple. A free sale plan gives you an estimated range, which is a pricing opinion for selling, not a certified appraisal.
Not sure what your business is worth? Start there.
Get my free sale planDoes PST apply when I sell my business's assets?
Yes, on taxable goods such as equipment. It does not apply to goodwill, to inventory bought for resale, to land and buildings, or to a share sale.
| What you sell | PST |
|---|---|
| Taxable goods and software | Applies. This includes affixed machinery, business equipment such as vehicles, shop equipment and appliances, computer hardware, shelving and display equipment, software, furniture and office equipment, and tools used to perform your services. |
| Goodwill | Does not apply. The value the buyer and seller agree to must be reasonable: they cannot raise the price of goodwill and cut the price of taxable assets below fair market value to avoid PST. |
| Inventory for resale | Does not apply when the buyer gives you their PST number or, without one, a completed general exemption certificate (form FIN 490). |
| Land and buildings | Does not apply. Property transfer tax may. |
| Accounts receivable | Does not apply. |
| Shares of a business | Does not apply. |
The Government of BC works through an example: a restaurant sold for $100,000. PST at 7% applies only to the taxable assets.
| Part of the price | Amount | PST at 7% |
|---|---|---|
| Taxable assets: the grill, ranges, tables, office equipment, serving dishes and utensils | $85,000 | $5,950 |
| Inventory for resale | $5,000 | None |
| Goodwill | $10,000 | None |
| The price | $100,000 | $5,950 |
| The buyer's total cost, with PST | $105,950 |
Who pays it. If the seller collects PST, the seller collects and remits it on the sale of taxable business assets. If the seller is not a collector or does not charge it, the buyer has to work out the PST and pay it on their next PST return.
The clearance certificate. BC says a buyer should have a clearance certificate before buying a business. It shows the seller has paid all outstanding PST, with any penalties and interest, up to the date it was issued. A buyer who does not get one is liable for an amount equal to any outstanding amount the seller owed. The seller can apply for duplicate copies and give the buyer one. With the seller's consent, the buyer can also ask for a copy directly, online or on form FIN 447.
Does GST apply?
It can. GST is federal, and the CRA has a rule for selling a whole business: you and the buyer may be able to elect that no GST/HST is payable on the sale.
- The test. You are selling the business you carried on, and the buyer acquires at least 90% of the property that can reasonably be regarded as necessary to carry on the business.
- The limits. The election cannot be made if you sell only one or more assets of the business, or if you are a registrant and the buyer is not.
- The form. It is Form GST44. The buyer files it no later than the due date of their next GST/HST return in which tax would have been payable if the election had not been made.
- What still carries GST/HST. Taxable services to the buyer, leases or licences of property, and taxable sales of real property to a buyer who is not registered.
Your lawyer papers the deal and your accountant advises on tax. Both are yours to choose.
Should I sell the shares or the assets?
It depends on how your business is set up, and your accountant works out which leaves more with you. In BC the choice changes your PST: it applies to taxable assets in an asset sale, and it does not apply to shares of a business.
BDC says buyers may want to purchase assets because of the tax benefits it gives them. A seller with a qualifying company can have a reason to prefer shares: the lifetime capital gains exemption. Half of a capital gain is taxed, and the Canada Revenue Agency's 2026 table puts the exemption limit at $1.275 million. Your accountant tells you the figure for the year you sell.
Our guide on selling shares or assets sets the two side by side, including the sole proprietor's case.
How do I sell a sole proprietorship?
You sell what the business owns, because a sole proprietorship has no shares to sell. The CRA says the owner of a sole proprietorship does not have separate legal status from the business, so there is no company to hand over.
BC Registries says that if you sell your business, you must dissolve your proprietorship, and the new owner must register a new entity. BC lists a $30 fee to request and reserve a business name and a $40 fee to register a sole proprietorship online. A buyer who will trade under their own name needs neither.
The sale is an asset sale, so the PST table above applies to the taxable goods, and the GST election may be open to you if you sell the whole business. BDC says owners of an unincorporated business do not qualify for the lifetime capital gains exemption. Ask your accountant how your sale is taxed.
What if the sale includes land, a building or a lease?
A licensed commercial realtor handles that part of the deal. We never do it ourselves.
BCFSA, the regulator, says businesses that are sold often include a trade in real estate, such as the sale of real property or the transfer of a lease. BCFSA also says that under the Real Estate Services Act no licensing is required for an asset sale with no real estate component.
PST does not apply to land and buildings, but property transfer tax may. It is based on the fair market value of the land and improvements on the day the transfer is registered with the Land Title Office.
| Fair market value | Rate |
|---|---|
| Up to and including $200,000 | 1% |
| Above $200,000, up to and including $2,000,000 | 2% |
| Above $2,000,000 | 3% |
A further 2% applies only to residential value above $3,000,000. As arithmetic on the general rates only, land and buildings worth $500,000 come to $2,000 on the first $200,000 and $6,000 on the other $300,000, which is $8,000.
My business holds a provincial licence. What happens to it?
Tell the licensing body before you sell, and expect a different process for a share sale and an asset sale. Consumer Protection BC says you must notify it in advance if you are planning to sell your business.
| Type of sale | What Consumer Protection BC requires |
|---|---|
| Asset sale (a new legal entity) | Notify it in writing and submit a new licence application. Licences are not transferable from one company to another. |
| Share sale (the same legal entity) | Fill out a notice of change form, provide documents from BC Registry Services that show a change in officers or shareholders, complete a criminal record check for new officers or shareholders, and pay all applicable fees. |
Its licences cover businesses such as funeral services, debt collection, payday loans, travel, telemarketing and home inspections. A trade licence from a safety regulator is a different matter: see our guide on what a trades business is worth.
What happens to my employees, my WorkSafeBC account and my registry record?
Your employees keep their service, a buyer should ask WorkSafeBC for a clearance, and a share sale that changes the directors needs a notice at BC Registries.
| What changes | What the government pages say |
|---|---|
| Your employees | Under section 97 of the Employment Standards Act, if all or part of a business is disposed of, the employment of an employee of the business is deemed to be continuous and uninterrupted by the sale. |
| Your WorkSafeBC account | WorkSafeBC says a buyer should contact it before buying any assets from a firm. If the seller owes unpaid premiums, the firm's assets may be subject to a lien in favour of WorkSafeBC, and a clearance letter protects the buyer against it. A clearance for buying a firm's assets is requested by phone or fax, not online. |
| Your directors | When the directors of a company change, you must notify the registrar within 15 days by filing a Notice of Change of Directors. |
| Your CRA accounts | The CRA says to contact your tax services office to close the GST/HST account, and to close the payroll account if the business has employees. You might also have to cancel your business number. |
Selling in Vancouver? Our page on selling a business in Vancouver lists what you hand over there, from your City business licence to WorkSafeBC clearance, with the sources.
Selling in Kelowna or the Okanagan? Our page on selling a business in Kelowna and the Okanagan lists what each town from Salmon Arm to Osoyoos and Kamloops asks of a new owner, with the sources.
Selling in Victoria? Our page on selling a business in Victoria lists what Greater Victoria's municipalities ask of a new owner, from the City of Victoria to Saanich and Langford, with the sources.
Selling in Nanaimo or elsewhere on the Island? Our page on selling a business in Nanaimo and on the Island lists what the towns from Duncan to Campbell River ask of a new owner, with the sources.
Selling in the Fraser Valley? Our page on selling a business in the Fraser Valley lists what Abbotsford, Mission and Chilliwack ask of a new owner, with the sources.
How do I keep the sale confidential?
Show buyers an anonymous profile first, and open names and numbers only after a signed confidentiality agreement.
In our process the first profile carries the industry, the region and headline numbers, with no name and no address, and nothing a competitor could place. The complete package, with the name and the financials, goes only to buyers who have signed a confidentiality agreement. Nothing that identifies your business leaves our hands without one. The most sensitive material, such as customer lists and contracts, opens only after a signed offer.
Questions owners ask
Does PST apply when I sell my business in BC?
What is a PST clearance certificate?
Do I have to tell Consumer Protection BC before I sell?
Do my employees keep their years of service in BC?
What is the lifetime capital gains exemption in 2026?
What happens to land or a lease in a BC sale?
Ready to see what a BC sale looks like for your business?
Get my free sale planSources
- Buying and selling a business, Government of British Columbia, PST, last updated 31 July 2026, read 21 October 2026.
- Property transfer tax, Government of British Columbia, last updated 3 December 2025, read 21 October 2026.
- Selling your business?, Consumer Protection BC, read 21 October 2026.
- Sale of a Business, BC Financial Services Authority (BCFSA), published 14 July 2022, read 21 October 2026.
- Employment Standards Act, section 97, Sale of business, BC Laws, King's Printer, act current to 13 October 2026, read 21 October 2026.
- Get a clearance letter, WorkSafeBC, page stamped 22 April 2021, read 21 October 2026.
- Business Corporations Act, section 127, BC Laws, King's Printer, act current to 13 October 2026, read 21 October 2026.
- Notice of Change of Directors, BC Registries, Corporate Online help, read 21 October 2026.
- Selling a business, Canada Revenue Agency, page dated 27 July 2026, read 21 October 2026.
- Government of Canada introduces new Productivity Mega Deduction to boost Canada's advantage as the most competitive G7 country for new business investment, Finance Canada, dated 15 September 2026, read 21 October 2026.
- Update on the Canada Revenue Agency's administration of the proposed capital gains taxation changes, Canada Revenue Agency, page dated 31 January 2025, read 21 October 2026.
- How to value a business you'd like to acquire, BDC, updated 28 July 2025, read 21 October 2026.
- Share transfers: How to minimize your taxes, BDC, updated 4 October 2022, read 21 October 2026.
- How a sale works, Succession Market, process page, read 21 October 2026.
- How the free estimate works, Succession Market, valuation page, read 21 October 2026.
- How the free sale plan works, Succession Market, sell page, read 21 October 2026.
- How to conduct due diligence when buying a business, BDC, updated 24 November 2025, read 21 October 2026.
- Adjustment of personal income tax and benefit amounts, Canada Revenue Agency, page dated 12 March 2026, read 21 October 2026.
- Information on Registration of Proprietorship (REG 21), BC Registries, August 2024, read 4 November 2026.
- Sole proprietorships and partnerships, Government of British Columbia, last updated 14 September 2026, read 4 November 2026.
- Sole proprietorship, Canada Revenue Agency, page dated 17 August 2026, read 4 November 2026.
- Family successions: How to minimize the tax hit, BDC, updated 4 October 2022, read 4 November 2026.
Who publishes this
Succession Market publishes this guide from Kelowna, British Columbia. We help owners navigate the sale of their business.
This guide is general information, not tax or legal advice for a particular sale. Your lawyer papers the deal and your accountant advises on tax. Both are yours to choose.