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xAttention Unemployment Insurance (UI) claimants: New York Business Express and the NYS100 registration application is only for New York State employers to use to register for UI coverage for their employees. To file a personal claim for UI, you must go online to www.labor.ny.gov/signin . Read more about how to file a claim and see a step-by-step guide to online filing.

Purchasing an Existing Business or its Assets

This page provides useful tax information for individuals purchasing an existing business or its assets.

	
		

Overview

Before purchasing an existing business, or some or all of the assets from an existing business, other than in the ordinary course of business, you must determine if the seller was required to collect NYS sales tax. If so, the sale is considered a bulk sale transaction and you, the purchaser, may be held liable for any sales or use tax the seller owes New York State.

As a purchaser of assets in a bulk sale transaction, you are required to:
• notify the NYS Tax Department of your pending purchase or acquisition using Form AU-196.10, Notification of Sale, Transfer or Assignment in Bulk, at least 10 days before paying for or taking possession of the business assets, whichever occurs first; and
• pay sales tax when purchasing business assets, such as furniture or office equipment.

For more information, visit the Tax Department’s website through the links below, or refer to Publication 20, New York State Tax Guide For New Businesses.

Businesses that have an interest in real property:
If you are acquiring a business that has an interest in real property, such as a deed or a lease, the transaction may be subject to the real estate transfer tax. For more information, visit the Tax Department’s website through the links below, or refer to Publication 20, New York State Tax Guide For New Businesses.

Additional licenses, permits, and registrations:
All the licenses, permits and registrations that are required to operate a business may not be transferable when purchasing an existing business. You will need to contact the issuing agencies for information on how to comply with New York State’s registration requirements.

For additional information/Sponsor Agency:

Taxation and Finance, Department of

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