Ask Terry Questions Stock Transfer

Stock Transfer

By Terry Savage on February 04, 2024 | Wild Card

I work for a large corporation and one of my customers sold their business to an employee and when I asked for a credit app be completed I was told that everything stays the same including the FEIN and CRT61 sales tax number because this is a stock transfer. Could this business sale or stock transfer be possible as I have never run into this type of situation without getting a new FEIN or a signed sales tax cert?
Thank you,

Terry Says

Whoa, this is way out of my territory. Your corporation attorney or tax specialist should be consulted re the impact of a stock transfer on the buyer’s use of the FEIN. And assuming you are an employee in charge of this activity, you are wise to not only put your request to the customer in writing, but to copy the appropriate person at corporate. And follow up requesting an answer to the question you posted here. That way you are fully covered!



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