Related Information

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

  • Obtain a sales tax license.
  • 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
  • Pay all business taxes due at the time of the sale.
  • Pay sales tax collected on the sale of tangible property.

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