The National Directory of
Certified Public Accountants

Ask A CPA - Buying & Selling a Business

1. Are some business locations better than others ?

2. Are there companies that provide search services to ascertain if a new company name will infringe on an existing name or trademark ?

3. Business Purchase - prior businesses debts

4. Can I make a tax free like kind exchange of the Goodwill I purchased with my new business ?

5. Employer Identification Number ( EIN )

6. Goodwill - amortizable basis

7. How can I get in touch with the Dun & Bradstreet Corporation for a business valuation ?

8. How do I deduct the value of the customer list I purchased ?

9. How do you allocate the purchase price of a business to various assets?

10. I want to sell my business . How much is it worth ?

11. I've been told I need a financial statement prepared by a CPA . What type of financial statement services are there and how much will it cost ?

12. In a merger , what is the Pooling of interests accounting method ?

13. Is there a website to contact an appraiser ?

14. Should I purchase the seller's corporation ?

15. What are some questions to ask when buying a Franchise ?

16. What assets in a business sale cannot be part of an installment sale ?

17. What does it mean when a seller

18. What IRS form is required to be filed if I bought a business and goodwill exists ?

19. What is a Cash Flow Statement ?

20. What is a franchise ?

21. What is a secured creditor?

22. What is Ratio Analysis as it relates to financial statements ?

23. What is the bulk sales tax?

24. What is the Gross Margin return on inventory mean ?

25. What is the Gross Profit Margin as it relates to Financial Statements ?

26. What is the Inventory Turnover Activity ratio ?

27. What is the IRS phone number to get an EIN Employer Identification Number ?

28. What is the IRS web site address ?

29. What is the Net Profit Margin as it relates to Financial Statements ?

30. What is the number of years I will be able to depreciate the building I purchased when I bought my business ?

31. What is the number of years I will be able to depreciate the equipment I purchased when I bought my business ?

32. What is the Price / Earnings ( P/E ) Ratio ?

33. What is the Rate of Return On Sales Ratio ?

34. What is the the Average Collection Period ratio ?

35. What legal aspects should I consider when buying a new business ?

36. What options do I have with the location of my business ?

37. What should I know about accounting and bookkeeping ?

38. When allocating the sales price over the assets in a business acquisition with goodwill , is there a allocation sequence order of the assets ?

39. When buying a business , what is the DUNS ( Data Universal Numbering System ) ?

40. When buying a business , what are some basic questions to ask ?

41. When buying a business , what is a SIC ( Standard Industrial Classification Code ) ?

42. When I buy a business , how is Goodwill determined ?

43. When I buy a business, should I sign the note personally?

44. When I sell my business , do I have to recognize the total gain in that tax year ?

45. When negotiating the sale of a business , what are some of the variables that may be changed to complete the deal ?

46. When selling a business including goodwill , which entities must file Form 8594 ?

47. Where can I locate my Industry Ratios and expense percentages ?

48. Within the many business valuation methods , what is the Asset Approach ?

49. Within the many business valuation methods , what is the Comparable or Guideline Company Approach ?

50. Within the many business valuation methods , what is the Discounted Future Earnings Method ?

51. Within the many business valuation methods , what is the Income Approach ?

52. Within the many business valuation methods , what is the Market Approach ?

If you need professional help with "Buying & Selling a Business" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.