Buying a Business
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 a "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 acquired personal property in the sale of the business for which you did not pay sales tax, you must pay consumer use tax on the purchase price of those goods.
Selling a Business
If you are selling a business, you must
- Pay all business taxes due at the time of the sale.
- Collect and remit sales tax for the sale of any business personal property (for retailers only).
