Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello and thanks for trusting me to help you today. I am a tax adviser with over 15 years of experience.When purchasing a business in NY you would need to advise the state about the bulk purchase. This would assist in your liability relief.You have to notify the state 10 days before paying the money for the business.
Within five business days of receiving Form AU-196.10, the Tax Department will advise you as to whether the seller has unpaid sales and use taxes. If the seller has unpaid sales or use taxes or is selected for additional review or audit, the Tax Department will send you Form AU-196.2, Notice of Claim to Purchaser, which will require you to not release any consideration to the seller until authorized by the department.If for some reason the state does not advise you of a withholding requirement and you have properly filed the form then you would not be held liable for tax liability.You will need to register for sales tax but that alone would not protect from the liabilities of the previous owner if you do not inform the state and receive the OK to pay them. Most licenses and registrations held by the previous owner can’t be transferred to you. You’ll need to apply for new ones.
If you are an S corp for federal then the state will acknowledge that as well.
You may wish to go over the followinghttp://www.tax.ny.gov/bus/doingbus/buy.htm
It should assist you with the purchase of the business in NY and what you are required to do for each possible area in New York.
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I do not think you understood my question. I know the procedure for bulk sale. There are no sales subject to sales tax in the acquisition. Please read my questions again.
I will opt out then and let another expert take over that would be able to assist you. They will contact you quickly.