QUESTION

Can we sell off shares in a business to another share holder/partner when there is pending sales tax?

Asked on Aug 02nd, 2012 on Business Law - Missouri
More details to this question:
If the partner is ready to take care of the pending taxes and other liabilities and the sale includes all these liabilities, will I be held responsible for the taxes afterwards?
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1 ANSWER

Litigation Attorney serving Greenwich, CT
Partner at Hilary B. Miller
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You can certainly enter into a contract with the purchaser of shares in the corporation that requires the buyer to pay any sales tax liability and to indemnify you (hold you harmless) with respect to those taxes. However, you will still be liable for them, and if he fails to perform his contract, the taxing authority can still come after you.
Answered on Aug 04th, 2012 at 7:02 AM

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