If a business is closed, and I taking over his lease and his business. Is there anything that i should know?

Question

anything I should know about his business or if he own back taxes? Would it be my responsibity because the same name? Should I change the name?

Answer 1

You should obtain an undertaking from him that he's given you all the information he has regarding the liabilities and contingent liabilities of the business. He should also give you an undertaking that if any liability were to pop up which was previously not listed and relates to his period of the business, he would bear those liabilities. You could also write a letter to the IRS asking if all tax matters relating to the business have been closed and there's nothing pending.

Answer 2

After reading the question I think you have bigger problems then that.

Answer 3

You need to seek legal counsel right away.  It's very possible you will not only be responsible for the assets of the business, but also any liabilities.

Depending on your sales contract, changing the name might not make a difference as to what your liabilities are.

You're escrow agent may also be able to help you figure this out.  Personally, I'd speak with a business attorney.  You need to find one anyway, before you run into problems.