Purchasing or Selling a Business

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Selling a Business

If you are selling a business Utah law requires you to:

  • File final tax returns within 30 days of the business sale.
    • For special fuel tax, file final returns within 15 days of the business sale.
  • Close all open tax accounts with the Utah State Tax Commission. Tax licenses are not transferable*.
  • Provide the purchaser with a receipt or letter from the Utah State Tax Commission showing no sales or special fuel taxes are owed.

Purchasing a Business

If you are purchasing a business Utah law requires you to:

  • Apply for new tax licenses. Tax licenses are not transferable*.
  • Have the seller give you a Letter of Good Standing from the Utah State Tax Commission showing that all taxes have been files and paid, or a letter from the Utah State Tax Commission stating no sales or special fuel taxes are due.
  • Withhold any amount of unpaid tax from the purchase price to pay to the Utah State Tax Commission within 30 days of the final sale of the business.

If you are purchasing a business, you could be held liable for previous sales and special fuel taxes the business may owe if you do not meet the requirements above.

* If business ownership changes, but the federal employer identification number (FEIN) is allowed to stay the same by the IRS, the new owner(s) is not required to obtain new tax account numbers with the Utah State Tax Commission (USTC). However, the new owner(s) must notify the USTC with the new owner and officer information. If you are purchasing or selling a business and need to know if this applies to you, legal counsel or the assistance of a professional accountant may be needed.

Please note . . .

TC-69 Form Usually Requires Additional Schedules

When submitting a TC-69 paper form, you MUST also include the appropriate schedule(s). If you do not include the correct schedule(s), your business registration will be delayed.

Note: To save time and ensure all needed schedules are included, you can apply for a tax account online.

Please note . . .

Sales tax filing is changing

All Utah sales and use tax returns and other sales-related tax returns must be filed electronically, beginning with returns due Nov. 2, 2020. File electronically using Taxpayer Access Point at tap.utah.gov.

This includes:

  • Third quarter, July-Sept 2020 (quarterly filers)
  • September 2020 (monthly filers)
  • Jan – Dec 2020 (annual filers)
  • All related schedules

You can continue to the PDF form below, or go to TAP to register and begin filing electronically now—no need to wait until the deadline!