Couple business plan questions.
So here`s the deal. Essentially I am attempting to take over an existing business that is currently failing, thus allowing me to get it for an obscenely low price. It is currently an internet cafe with an amazing amount of growth potential and is located in a town where there is nothing like it around. Basically, the people that own it now have limited experience in running a food service establishment and have decided they want out. What they want to do is essentially turn over ownership of the company to me. Here`s where my first question lies. If they maintain titled ownership, what are the IRS ramifications. Such as I may not change the name, they will pay sales taxes from an account I have to make weekly deposits into. Other than that, everything falls under my name. My responsibilities to them is to pay the $800/mo rent and cover all day to day expenses as well as 10% of sales weekly. Would I still be considered the owner for taxes? Would it be a sole proprietorship? With an answer to this I will be able to figure more out. Thanks in advance for the responses.
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