While it might be the furthest thing from their mind at this juncture, there may come a time in the not-so-distant future when a business owner decides that they would like to pursue another venture or perhaps even retire while profit margins are good.
When this time comes, a business owner will have several options, including turning over management to a partner or family member, initiating the process of permanently shuttering operations and, of course, selling the operation to an interested party.
In the event the business owner elects to sell their business, they should be aware that there are certain obligations that they are required to satisfy under Utah law.
Some of the more notable of these requirements include:
- Closing all open tax accounts with the Utah State Tax Commission
- Filing all final state tax returns within 30 days of the completion of the business sale
- Providing the buyer with either a receipt or a letter from the Utah State Tax Commission indicating that no sales taxes are owed
As complex as this might seem, consider that there are also a host of federal tax matters that must also be taken into account, each more arcane than the last. This is not to mention the myriad of issues that must be carefully addressed during negotiations from the pricing and terms of the sale to the issue of successor liability.
What all of this really serves to underscore more than anything is that the act of selling a business requires more than just a handshake and the passing of a check. Rather, it's a multifaceted and multistage transaction necessitating the right amount of diligence and prudence.
As such, those who find themselves in this situation should seriously consider meeting with a skilled legal professional who can manage the entire process thereby enabling them focus on the next big thing.