Hello. I recently sold a small business to my co owner. The LLC it was under is getting dissolved, and she has created a new LLC for the business. I’m trying to file taxes for the first quarter that we were open, and the sales tax that was collected from customers was put into the business bank account that she now has possession over. She is refusing to give us the collected sales tax and saying it’s our responsibility now since all financial ties are severed. Is that legal for her to keep that money?
1 Answer from Attorneys
There are two types of transactions. One is when one buys the actual business and the other is when one buys just the assets of a business. Though the end effect may seem to be the same the two different type result in two different responsible parties for any taxes collected / owed.
It is unclear from your description which type of transaction you undertook. After the type of transaction is knows all the documents would need to be reviewed to determine the responsible party. Feel free to reach out directly to me.
Roman R. Fichman, Esq.
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