Questions Owners Should Answer When Preparing a Business

I. As a Sole Proprietor

  1. Will your husband or wife sign all documents?
  2. Have you filed or registered a Fictitious Name, and kept up the periodic renewal?

II. Corporations, LLC, Partnerships

  1. Have they filed their current tax return?
  2. Are the state registrations current?
  3. Are all sales tax, payroll tax, and other liens cleared?
  4. Is the Fictions Name filing current up to date?

III. Landlord

  1. Does the rent match the lease and is rent current?
  2. What are the options for renewal of lease?
  3. Will the lease be assigned to the new buyer at the current amount and with options in place?
  4. What are the landlord’s condition of assigning lease to a new owner?

IV. Tax Returns

  1. Will you sign IRS Form 4506, to assure the copies of the returns are the same as those filed?
  2. Do the returns march the P&L’s and balance sheet?

V. Other Taxes and Fines

  1. Are sales taxes paid up to date?
  2. Are payroll taxes up to date?
  3. Is alcohol tax up to date?
  4. Are there any unpaid fines?

VI. Professional Affiliations

  1. Are they paid and up to date?
  2. Are there any unpaid fines or a history of violations?

VII. Health Department, Fire Department, and EPA if applicable.

  1. When was the last inspection?
  2. Is there a septic tank? If so, it would need an inspection.
  3. Do you have an EPA inspection report? At the least, a Phase 1 audit would be necessary.