If I had a partner in my business and we went separate ways but she did not pay sales tax or many other bills, what is my liability?

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If I had a partner in my business and we went separate ways but she did not pay sales tax or many other bills, what is my liability?

I had been making payments to her. For merchandise she had bought for our store. Her husband who was not in on the agreement between her and I to begin with has been emailing and calling me demanding payment or he will file a lien on my property. Why should I have to pay the debts she did not pay while I was working another job and still paying her also?

Asked on January 16, 2012 under Bankruptcy Law, Colorado

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If your former business partner failed to pay sales tax and other bills associated with the business that is no longer in operation, you under the law of your state would be responsible for the bills as well as the partner.

However, before you even consider payment of any of the unpaid bills for the property sales tax and the like, you need to see copies of the invoices and bills and then consult with a business attorney on how to best get the bills paid where you do not send money to the former partner who may not use the money sent to pay the outstanding bills.

The best way to resolve the situation is for you and the former business partner to sign an agreement concerning these bills and money to pay them be paid into an escrow account. The escrow will then pay the bills from the account.


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