Legal Question in Business Law in New Jersey

Hello. I recently sold a small business to my co owner. The LLC it was under is getting dissolved, and she has created a new LLC for the business. I’m trying to file taxes for the first quarter that we were open, and the sales tax that was collected from customers was put into the business bank account that she now has possession over. She is refusing to give us the collected sales tax and saying it’s our responsibility now since all financial ties are severed. Is that legal for her to keep that money?


Asked on 9/12/20, 4:48 pm

1 Answer from Attorneys

Roman Fichman Esq. Law Practice of Roman Fichman Esq.

There are two types of transactions. One is when one buys the actual business and the other is when one buys just the assets of a business. Though the end effect may seem to be the same the two different type result in two different responsible parties for any taxes collected / owed.

It is unclear from your description which type of transaction you undertook. After the type of transaction is knows all the documents would need to be reviewed to determine the responsible party. Feel free to reach out directly to me.


Roman R. Fichman, Esq.

www.TheLegalist.com │ @TheLegalist

email: Info (@) TheLegalist (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 9/25/20, 10:06 am


Related Questions & Answers

More Business Law questions and answers in New Jersey