Question:
Buying or Selling a Business. What do I need to know about the business and my tax
responsibilities?
As the buyer of a business that sells goods, you must
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Obtain a sales tax license.
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Pay sales tax on the tangible personal property included
in the purchase of the business by the 20th day of the month following
the sale.
If you are buying a business, you may request a “Tax Status Letter”
from the Department of Revenue. The letter indicates the department’s
current information regarding where the business stands with tax
payments and tax delinquencies. Complete a Request for "Tax Status
Letter" (DR 0096). The fee is $7 per tax. The seller of the business
may request the letter for the buyer or the buyer may request the
letter with a power of attorney from the seller.
If you are selling a business, you must
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Pay all business taxes due at the time of the sale.
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Pay sales tax collected on the sale of tangible
property.
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