Legal Question in Business Law in New York

Ran someone else is business on a 6 months trial...which actually did not work out worth ...had to pay out of pocket for many things and had a loss....it was agreed verbally that if after 6 months we do not think its worth keeping the business we will get 5k return from the 15k advance we gave in the beginning...we never asked for any money back..we ran the business more than 6 months due to the owner saying ..please run for few more months till we find someone to buy the business...as in the 8th month we had to pay expenses out of our pocket and they couldnt find anyone they told us to close it down. we never asked for any money back...they owed us 5k according to what was decided...nothing was on our business name...now the last quarter tax was due and we refused to pay out of pocket and told them to pay from the money they owe us...they dont want to give us any money back and also treat us to pay tax out of pocket...Please advise


Asked on 6/08/15, 12:05 pm

2 Answers from Attorneys

Frank Natoli Natoli-Legal, LLC

A quickie Q&A platform like this is not going to be able to offer any meaningful answers so you are indeed advised to consult with a lawyer in private and make sure everything is understood.

As I see it at first blush however the tax obligation belongs to the actual business owner and attributed to its principals if left unpaid. Unless there is written contract that makes you liable for the tax bill I cannot see how this is your responsibility. If you are under some contract that obligates you then you may have a legitimate dispute on your hands. On one side the 5K remaining that you claim you get back and on the other the tax bill the business owner claims you are responsible for. I urge both parties to try and work it out because going to court can be expensive.

Again, talk a lawyer in private so all the facts can be clearly understood.

If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient. Our firm is now referred by the American Bar Association (see under the New York section):

http://www.americanbar.org/groups/delivery_legal_services/resources/programs_to_help_those_with_moderate_income.html

Kind regards,

Frank

www.LanternLegal.com

866-871-8655

[email protected]

DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.

Read more
Answered on 6/08/15, 12:15 pm
Roman Fichman Esq. Law Practice of Roman Fichman Esq.

If nothing is in your name and there are no formal agreements, it is not clear what is your obligation to pay the taxes or even continue to be involved with the business. Furthermore, even if you did not have written agreements as to your involvement, you can still demand that you be paid for your past work in the business.

Consider retaining an attorney for a consultation so the facts can be flushed out and a course of action figured. These consultations are not expensive and will give you a clearer understanding of your rights, obligations and options.

Contact me directly to continue.

Roman R. Fichman, Esq.

www.TheLegalists.com │ @TheLegalist

email: Info (@) TheLegalists (dot) com

t e l : 2 1 2 -- 3 3 7 -- 9 8 3 7


Disclaimer: This post has been written for educational purposes only and was not meant to be legal advice and should not be construed as legal advice or be relied upon. No intention exists to create an attorney-client relationship or any other special relationship or privilege through this post. The post may contain errors, inaccuracies and/or omissions. You should always consult an attorney admitted to practice in your jurisdiction for specific advice. This post may be deemed as Attorney Advertising.

IRS CIRCULAR 230 DISCLOSURE: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any matters addressed herein.

Read more
Answered on 6/08/15, 12:16 pm


Related Questions & Answers

More Business Law questions and answers in New York