Category Archives: due diligence

When buying a small business – Allocation of Purchase price is important!

Allocation of Purchase Price is done for tax purposes when buying the assets of a small business. The allocation is important because it effects how the person buying a business and the person selling a business will be taxed and what deductions are possible. Always do the allocation of purchase price before closing the transaction, […]

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Due Diligence for Buying a Business – Part 3

Assuming you’ve read Part 1 and Part 2 here we go with Part 3. Sales Tax and Due Diligence in a small business purchase: Make sure the seller provides you with the Sales Tax Reports for at least 3 years. Double check those with the reports filed with the state. It is pretty unusual for […]

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