Can I sell a business I inherited but never ran?

Not having run a business does not stop you selling it, but two other questions come first: who has authority to sign, and what the estate still owes. BDC says buyers want to understand financial performance and track record, and an owner who never ran the business can still prepare for that. The order of steps differs from an ordinary sale because the estate comes first.

Who has authority to sell

The CRA says the legal representative is responsible for administering the estate and is typically the executor named in the will, or the liquidator in Québec. A beneficiary who is not the executor may not yet hold the shares or assets, so an estate lawyer should confirm who can sign before any buyer is approached. What happens to my business if I die covers the stage before this one.

Tax and clearance come first

The legal representative must make sure the deceased’s returns are filed and any balance owing is paid before distributing the estate, and the CRA says to apply for a clearance certificate before distributing any assets. A representative who distributes without one can be held personally liable for outstanding tax balances. That can affect when sale proceeds are paid out to beneficiaries. When the business itself is sold, the CRA says a business number may need cancelling, a payroll account must be closed if there are employees, and a GST/HST account is closed through the tax services office.

What buyers will ask that you may not know

BDC lists historic and interim financial statements, projections, tax returns and other records among what buyers ask to see, and describes what a seller gives the new owner, such as getting them up to speed on operations and introducing suppliers. If you never ran the business, lean on the bookkeeper or accountant who did and on staff who know the work, and arrange for them to answer a buyer’s questions. A buyer will test the records in due diligence, so say plainly what you cannot answer.