Questions Owners Should Answer When Preparing a Business
I. As a Sole Proprietor
- Will your husband or wife sign all documents?
- Have you filed or registered a Fictitious Name, and kept up the periodic renewal?
II. Corporations, LLC, Partnerships
- Have they filed their current tax return?
- Are the state registrations current?
- Are all sales tax, payroll tax, and other liens cleared?
- Is the Fictions Name filing current up to date?
- Does the rent match the lease and is rent current?
- What are the options for renewal of lease?
- Will the lease be assigned to the new buyer at the current amount and with options in place?
- What are the landlord’s condition of assigning lease to a new owner?
IV. Tax Returns
- Will you sign IRS Form 4506, to assure the copies of the returns are the same as those filed?
- Do the returns march the P&L’s and balance sheet?
V. Other Taxes and Fines
- Are sales taxes paid up to date?
- Are payroll taxes up to date?
- Is alcohol tax up to date?
- Are there any unpaid fines?
VI. Professional Affiliations
- Are they paid and up to date?
- Are there any unpaid fines or a history of violations?
VII. Health Department, Fire Department, and EPA if applicable.
- When was the last inspection?
- Is there a septic tank? If so, it would need an inspection.
- Do you have an EPA inspection report? At the least, a Phase 1 audit would be necessary.