personally responsible even if they sell the business. The amount owed is tens of thousands of dollars, which is much more that either of them can come up with. I will be buying the business for next to nothing, so there will not be any money coming from that. How do I avoid the IRS coming after me/my business if the current owners fail to pay up? Could they "go out of business" on a Friday and I "open a new business" on a Monday? I'm just tyring to avoid having to pay their back taxes.
2007-03-11 11:02:41 · 3 answers · asked by NASCAR_Guy 2 in Business & Finance ➔ Taxes ➔ United States
If you buy the stock in the company you are stuck with the debts. If you buy the assets of the business you should be OK. Make sure you know what you are buying. There is no substitute for good legal advice in this situation. I cannot imagine such advice being more than the likely tax bill.
2007-03-11 12:15:21 · answer #1 · answered by skip 6 · 0⤊ 0⤋
Generally speaking, when you assume a business, you assume their liabilities too. This can be unpaid unemployment taxes, etc. Unless you have the money for a good attorney, or the money to assume this business and its liabilities, don't do it! Once the deal is done it's too late.
2007-03-11 11:11:22 · answer #2 · answered by Lance 3 · 0⤊ 0⤋
depends on what the contract says, at closing.
2007-03-11 11:08:18 · answer #3 · answered by skcs11 7 · 0⤊ 0⤋