Buying & Selling a Business In Tucson Blog

Tucson Business For Sale? Make Sure Your Taxes Are Current

 

When you are preparing to place your business for sale in Tucson ( or anywhere else for that matter), it is extremely important to ensure that you are current on all of your federal, state and local taxes.   While that may seem pretty obvious, in the heat of the battle it's possible that something may have slipped through the cracks so it is best to double check.

Additionally, those qualified investors considering buying a business in Tucson will be impressed by you as a seller if you are knowledgeable about the taxes that your business is subject to, and open and transparent about sharing your knowledge.  Taxes of course can be complicated, and they are continually changing. Taxes in the City of Tucson are no exception.  

The purpose of this article is to continue to explore the resources that are available online at the City of Tucson to help understand Tucson business taxes.  If you are considering a Tucson business investment, or buying or selling a business in Tucson, here are some important areas where further investigation will be beneficial to you

• If real estate is involved in the business transaction, make sure you understand the tax implications if you will have rental income. For example, if you lease property to an S Corp that you also have an interest in, the transaction is taxable.  You will also need a business privilege license.
• If some of the Tucson business' sales are conducted with out of state customers, investigate the proper handling sales tax to customers out of state.  The State of Arizona allows taxes to waived for out of state residents making purchases while in Arizona, but the City of Tucson only waives the taxes if the customer is physically outside of Arizona at the time of purchase.
•  Similarly,if your business takes orders from a location within the limits of the City of Tucson, you must pay the 2% sales tax even if the customer is out of state.

If your business is for sale in Tucson, don't let confusion about how local taxation works create a misstep in the process as you prepare to sell a Tucson business.

Click here to download the City of Tucson's "City Tax FAQs"  document now.

If you have any additional questions about this, visit the City of Tucson's Web site at:

http://www.tucsonaz.gov/finance/BusInfo.html

 

 

 

 

 

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