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WiseOwl58
WiseOwl58, Attorney
Category: Business Law
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Experience:  Experienced business lawyer.
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If I sell my business, what will happen if I owe back taxes,

Customer Question

If I sell my business, what will happen if I owe back taxes, Sales Tax?
Submitted: 4 years ago.
Category: Business Law
Expert:  WiseOwl58 replied 4 years ago.
It depends what kind of sale you do.

If you sell only the assets of the business then you would keep the tax liability.

However if you sell the stock of the company the new owner would assume the tax liability.

Good luck to you I wish you all the best.
Customer: replied 4 years ago.

Ok, I'm selling the business with everything in it, contracts, work, employees, etc.


 


The business was a sole prop.

Expert:  WiseOwl58 replied 4 years ago.

Dear Dillon:

 

If your business is a sole proprietorship, and you are selling the assets only, then you would retain any liability for taxes, unless you put into your sales contract that the buyer will assume any liability for taxes due and payable.

You can put that into the agreement by saying that the buyer assumes any taxes due on the business. However, unless you make a specific provision for that, since it is a sole proprietorship and the taxes fall under your personal social security number, you would retain liability for it even if you sell the assets of the business.

Good luck to you, Dillon. I wish you all the best.

Expert:  WiseOwl58 replied 4 years ago.
Dear Dillon:

Please review the answer I have given you and rate it a 3, 4 or 5.

If you need anything else for this answer, please hit the reply button.

Please let me know if I can help you with any other questions. Just put my name WiseOwl 58-- in the first line and I will get it and answer right away.

All the best to you.
Expert:  WiseOwl58 replied 4 years ago.
Hi, Dillon:

Please review the answer I have given you and rate it a 3, 4 or 5.

If you need anything else for this answer, please hit the reply button.

Please let me know if I can help you with any other questions. Just put my name WiseOwl 58-- in the first line and I will get it and answer right away.

All the best to you.
Expert:  WiseOwl58 replied 4 years ago.
Please review the answer I have given you and rate it a 3, 4 or 5.

If you need anything else for this answer, please hit the reply button.

Please let me know if I can help you with any other questions. Just put my name WiseOwl 58-- in the first line and I will get it and answer right away.

All the best to you.
Expert:  WiseOwl58 replied 4 years ago.
Dillon:

Please review the answer I have given you and rate it a 3, 4 or 5.

If you need anything else for this answer, please hit the reply button.

Please let me know if I can help you with any other questions. Just put my name WiseOwl 58-- in the first line and I will get it and answer right away.

All the best to you.
Expert:  WiseOwl58 replied 4 years ago.
Please review the answer I have given you and rate it a 3, 4 or 5.

If you need anything else for this answer, please hit the reply button.

Please let me know if I can help you with any other questions. Just put my name WiseOwl 58-- in the first line and I will get it and answer right away.

All the best to you.

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