There are two common scenarios this article covers:
Change of Ownership (CoO): The individual or entity operating the business is changing — for example, the business was sold to a new person or group.
Change of Legal Entity (CoLE): The legal entity/EIN is changing — for example, switching from a sole proprietorship to an LLC.
If you're only updating a bank account, follow this article in Toast Central instead: Update or Add a New Bank Account in Toast Web.
Please keep in mind that all sales deposits will continue to flow to the current bank account on file on the Toast account until the COLE/COO has been completed. We cannot retrieve funds that have already been deposited and re-deposit them to another bank account.
Note: This process is only valid for U.S.-based locations.
Before You Start
Have these ready:
A voided check or a bank letter to verify the new legal entity’s bank account.
Email address for the original Toast account owner.
Official documentation (e.g., bill of sale, articles of incorporation) from the owner that is currently on file. If they’re not available, the new owner’s documentation (e.g., bill of sale, articles of incorporation) will work.
Identity verification materials: You’ll need a camera-enabled smartphone to complete ID verification.
Additionally, if there are any deposit disputes between new and old owners, you will need to resolve these to ensure Toast is able to ensure deposits going to a specific bank account on any exact date at the start of the process.
Back to top
Timeline Overview
This process usually takes 7 to 11 days, depending on:
How quickly the required forms and documentation are submitted.
Whether the current owner is available.
Whether Toast Capital is involved (if a loan exists on the account).
The accuracy and completeness of the submitted documents.
We aim to honor your preferred effective date, but cannot guarantee a specific date. You’ll get a confirmation email once the change is finalized. |
Process Overview
Contact Toast Support
The owner currently on file on the Toast account should start the process by:
Using chat (ask immediately for a human) or calling Toast Support.
Use phrases like:
“Sold business to a new owner”
“Change legal entity/EIN”
Do not say “bank account change” — this triggers a different process.
Back to top
Initial Routing + Authorization
Depending on your situation:
If the current owner is available: They should initiate the case.
If unavailable: The new owner must provide:
A bill of sale, articles of incorporation, or other ownership proof.
In these cases, Toast may:
Require additional verification.
Involve a specialized review team.
Add 1–2 days to the timeline.
If you have an active Toast Capital loan:
The Toast Capital team will handle the change.
They will guide you through any differences in the process.
The loan must be resolved before the ownership change is finalized.
A case is created and:
If you’re authorized, it proceeds with Account Operations or Toast Capital.
If not, it goes into “pending” status until the owner responds.
Be sure to save your case number and refer to it in follow-ups. Learn how to view and follow up on cases in this Toast Central article: Get Help With Customer Care Case Comments and Details.
Back to top
Receive & Complete Digital Forms
You’ll receive:
A link via email with:
A short questionnaire to determine which form is needed.
A tool for ID verification via your camera-enabled phone.
You can also request this link through the chat conversation.
Form expiration: These forms expire after 30 or 60 days (expiration noted on the form).
Based on your scenario:
Only legal entity (EIN) is changing:
Current owner completes the Change of Legal Entity (CoLE) DocuSign form.
Legal entity and ownership is changing:
Current owner signs as the Assignor.
New owner completes the form as the Assignee.
Only ownership is changing (same legal entity):
New owner completes the Change of Ownership (CoO) DocuSign form.
Be sure to attach the voided check or bank letter for the new legal entity’s bank account.
Back to top