Do I need to charge sales tax?

Depends on state. Most states tax commercial equipment sales unless an exemption applies (casual-sale exemption, resale-certificate exemption). California, Texas, and Florida have specific rules for private-party business equipment sales. Verify with state Department of Revenue before agreeing on price. Buyer often pays use tax in their state if seller doesn't collect.

What if the equipment has a UCC-1 lien filed against it?

Buyer should NOT pay until the lien is released. The lien means a lender has a security interest in the equipment; if seller defaults on the underlying loan, the lender can repossess from buyer. Insist on a UCC-3 termination statement filed before or simultaneous with closing, or pay the lender directly to satisfy the lien.

Do I need an attorney for a bill of sale?

For routine sales under $10K, this template is generally sufficient. For sales above $50K, complex equipment with software licenses, asset sales as part of business sale, or cross-state transactions, engage a business attorney. The cost ($500-$2,500) is small relative to the transaction value and avoids surprises.

What about software licenses on the equipment?

Software licenses on modern equipment are often non-transferable by default. Buyer should verify license transfer rights with the software vendor before purchase. Some vendors charge transfer fees ($500-$5,000); some require formal license-transfer paperwork. Build any transfer cost into the negotiated price.

Equipment Bill of Sale

Bill of sale for business equipment — transfers title from seller to buyer with warranty, condition, and payment terms.

Customise

Effective date

Seller — name

Seller — address

Buyer — name

Buyer — address

Equipment description

Sale price ($)

Payment terms

Warranty / as-is

Warranty details (if not as-is)

Seller representations

State (governing law)

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BILL OF SALE — BUSINESS EQUIPMENT

This Bill of Sale (this "Bill") is entered into and effective as of May 7, 2026 (the "Effective Date") between:

  SELLER:  Mesa Print & Graphics LLC
  Address: 5544 E Main Street, Mesa, AZ 85205

  BUYER:   Tucson Print Co.
  Address: 440 W Drachman Street, Tucson, AZ 85705

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1. EQUIPMENT SOLD
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Seller hereby sells, transfers, and conveys to Buyer the following equipment (the "Equipment"):

1 × Konica Minolta bizhub PRESS C7000 production printer
Serial number: KM-PC7000-19-2847
Year: 2019
Mileage / page count: 4,287,650 pages
Condition: Used — fully operational; recent maintenance log included.
Includes: 4 toner cartridges (partial), 2 sets of replacement rollers, original manuals, calibration tooling, RIP software (Caldera with active license through 2027).

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2. PURCHASE PRICE AND PAYMENT
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Purchase Price: $18,500.00

Payment Terms:
Cashier's check or wire transfer at signing. Buyer takes possession upon receipt of payment by Seller.
No financing arranged through Seller.

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3. TITLE AND TRANSFER
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Upon receipt of payment in full, Seller transfers full title to the Equipment to Buyer, free and clear of all liens, security interests, mortgages, and encumbrances. Risk of loss passes to Buyer upon transfer of possession.

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4. SELLER REPRESENTATIONS
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Seller warrants that: (a) Seller has full legal title to the Equipment, free from liens, security interests, and encumbrances; (b) Seller has full authority to sell the Equipment; (c) the Equipment description above is accurate to Seller's knowledge; (d) the Equipment is being sold in the condition described; (e) all software licenses transferred with the Equipment are current and transferable.

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5. WARRANTY
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THE EQUIPMENT IS SOLD "AS IS" AND "WHERE IS." SELLER MAKES NO WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. BUYER ACKNOWLEDGES HAVING INSPECTED THE EQUIPMENT AND ACCEPTING IT IN ITS PRESENT CONDITION.

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6. INSPECTION AND ACCEPTANCE
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Buyer acknowledges that Buyer has inspected (or had the opportunity to inspect) the Equipment and accepts it in its present condition. Photos taken at the time of sale are attached as Exhibit A and constitute the agreed condition baseline.

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7. SALES TAX AND OTHER TAXES
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Buyer is responsible for any sales, use, or transfer tax due on this transaction in the jurisdiction where the Equipment is delivered or used. Seller shall provide a properly completed bill of sale and any other documentation Buyer reasonably requests for tax-compliance purposes.

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8. INDEMNIFICATION
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Each party indemnifies the other for any breach of that party's representations or warranties hereunder.

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9. GOVERNING LAW
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This Bill of Sale is governed by the laws of the State of Arizona.

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10. ENTIRE AGREEMENT
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This Bill of Sale constitutes the entire agreement between Seller and Buyer regarding the Equipment and supersedes all prior negotiations, representations, and agreements.

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EXECUTION
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IN WITNESS WHEREOF, the parties have executed this Bill of Sale as of the Effective Date.


SELLER:                                      BUYER:

_______________________________            _______________________________
Mesa Print & Graphics LLC                  Tucson Print Co.

By:    _____________________________         By:    _____________________________
Title: _____________________________         Title: _____________________________
Date:  _____________________________         Date:  _____________________________


EXHIBIT A — Condition Photos (attach photos taken at time of sale)

About this template

A bill of sale for business equipment serves three legal functions: (1) transfers title from seller to buyer, (2) documents the sale price for tax and accounting purposes, and (3) memorializes warranty (or as-is) status. For most used commercial equipment, the AS-IS sale is standard and protects the seller from later disputes about condition. The most-litigated areas: (1) Lien-free representation — buyer should verify no UCC-1 financing statements are filed against the equipment (search Secretary of State UCC database) before paying. A lien on the equipment means the lender can repossess it from buyer. (2) Software license transferability — modern industrial equipment often has embedded software with non-transferable licenses; verify license transfer or risk paying for a re-license post-sale. (3) Sales tax — most states tax the sale of business equipment; some have exemptions for "casual sales" between non-dealers (private-party sales). Use tax may apply when equipment is moved across state lines. Verify state-specific rules before agreeing on price (often the buyer wants tax included; seller prefers tax separate). (4) Title and registration — for vehicles, trailers, and certain heavy equipment, title transfer at the DMV is also required; the bill of sale alone is not sufficient. (5) Bulk sale law — when business equipment is sold as part of a larger transfer (going concern), some states have bulk sale notice requirements that can void the sale or hold buyer liable for seller's creditor claims. Best practices: (a) Photograph equipment from multiple angles at sale; attach to bill of sale as Exhibit A. (b) Complete the inspection on-site before payment. (c) Use cashier's check or wire transfer for payments above $5K. (d) Verify operability — a brief test run before final payment, especially for equipment requiring calibration. (e) Keep the bill of sale with business tax records for at least 7 years (basis documentation for depreciation recapture, sales-tax audits). State considerations: Article 2 of the UCC governs commercial sales in 49 states (Louisiana variants). Article 2 implies warranties of merchantability and fitness unless explicitly disclaimed; the AS-IS language is the standard disclaimer.

When to use it

Selling used business equipment between businesses (private transaction).
Asset sale as part of going-concern business sale.
Inter-company equipment transfer (for tax basis and recordkeeping).
Selling equipment to employees or family members at fair market value.
Transferring equipment after termination of equipment lease (Lessee buys at end of term).

What to include

Seller and buyer identification with addresses.
Equipment description with serial numbers, year, condition.
Sale price and payment terms.
Title-transfer language and lien-free representation.
Warranty (or as-is) clause with conspicuous disclaimer.
Condition photos as exhibit.
Sales tax allocation.
Governing law.

Frequently asked

For used commercial equipment, AS-IS is industry standard. Warranties expose seller to disputes over inherent defects that may not be obvious at sale. If buyer wants warranty, price the equipment higher to compensate for the risk. Some sellers offer 30-day "operating warranty" (equipment will turn on and run) which is narrow enough to manage but signals seller confidence.

⚠ Legal disclaimer. Article 2 of the UCC governs commercial sales in 49 states (Louisiana variants). State-specific sales tax, transfer tax, and bulk-sale laws apply. UCC-1 lien searches should be performed before purchase. For high-value sales (over $50K) or complex transactions, engage a business attorney. Not legal or tax advice.