Legal Question in Business Law in Mississippi

Once someone files for Business License, are they supposed to start using their

My husband went into business with a relative in Feb 02. They used his SS# to file Sales taxes and Employee taxes from day 1. The relative was to run the business and be a working manager. We invested money into the business, however the relative chose not to listen to our requests over and over. The business incurred debt and we had to put up property for collateral until paid off. By Dec of 2002, we decided to cut our losses and get out. We asked the partner to file for privalege license in her own name, quit using our checking account (still had checks out that had to be covered) when all checks had cleared. She was also supposed to open account in her name, change over all account payables to her name, quit filing employee and sales tax under my husband's SS#. They continued using his SS# until, I think July 03. She has refused to Pay the Business part of our personal taxes, even though the business was paying all debt. My question is...since they continued to use SS# until July 03 even after she had applied for privelege license in her name in Jan 03, can we prove that we were no longer involved and make her responsible for the 2003 taxes?


Asked on 3/02/04, 11:00 am

1 Answer from Attorneys
Albert Pettigrew Law Offices Ph 228-875-8736

Re: Once someone files for Business License, are they supposed to start using th

Her filing for a business license in her own name in 1/03 is some evidence of intent to operate as a sole proprietorship, but the use of your husband SS# is evidence of a continued partnership. Consider contacting an attorney about winding up the business and sending written notice to the Mississippi State Tax Comm. that the partnership terminated effective January 2003.

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Answered on 3/02/04, 11:09 am


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