Legal Question in Business Law in Texas

selling a small business

My company wants to be bought by an international company. On the due diligence form they request my tax forms. Being that I am a sole-proprietor, I am hesitant to give it, as all of my income and it's sources (not just the business they want to buy) are on it under my SS#. I feel they would be getting info that is none of their business and irrelevent. Is there reasonable ground for me to stand on to tell them that I refuse to turn my tax returns over to them without compromising the deal? What are my alternatives to my tax-forms that will give them the info they want?


Asked on 11/13/08, 1:55 am

1 Answer from Attorneys
David Leon David L. Leon, P.C.

Re: selling a small business

First, selling your business is a large project and given that this is your livelihood, not a project that you should undertake without a lawyer. You can walk into several traps, of which this is one.

That being said, you can offer a business financial statement and redacted tax forms. You can also restrict who in the company (or a third party auditor) can review your financial information. Finally, you can offer up a verification of the company's financials in lieu of a tax form. It depends on what they will agree to accept.

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Answered on 11/13/08, 10:16 am


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