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FAQ / What to consider when purchasing an existing business?Before purchasing an existing business, or the assets from an existing business other than in the ordinary course of business, you must determine if the seller was required to collect the state sales tax. If so, the sale is considered a bulk sale transaction, and the purchaser has legal responsibilities regardless of the size or cost of the purchase. A person who purchases or acquires all or any part of the assets of a business may be held personally liable for any sales tax owed by the seller. As a purchaser of assets in a bulk sale transaction, you are required to notify the state department of taxation and finance of your pending purchase or acquisition before paying for or taking possession of the business assets. Any license or registration that is required for the operation of the business may not necessarily be transferable from one individual or business, even when an existing business is purchased. You may be required to complete new registration forms for all required licenses or registrations. For more information, please contact us. |
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