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In the state of Ga, if you have a payment arrangement set up to pay back a state tax lien, can you open a new business?

Griffin, GA |

In the state of Ga, does a state tax lien have to be repaid in full before you are allowed to open up a new business, or will they allow you to open up a new business if you have a payment arrangement set up with the Ga Dept of Rev to repay the state tax lien? I want to start a cleaning business that sells cleaning supplies with a store front location and am wanting to know if I will be allowed to get a new business license to do so while on a payment arrangement to repay a state tax lien in Ga.

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Attorney answers 1

Posted

Business licenses are generally issued by your County or City authority, not by the state. Some professionals licensed by the State are required to be in a payment plan on unpaid prior taxes in order to renew their licenses. Your question does not say what sort of taxes you owed that created the tax lien. Since the Dept of Revenue does not issue business licenses, the only conceivable difficulty might be with sales and use taxes as you register for a new sales and use tax number if you have outstanding unfiled and unpaid sales taxes. Based on the information you provided, you are probably free to open a new business, and you will certainly need to register with the sales and use tax division. Before setting up your new business, you should consult with a business lawyer and a tax adviser so they can assist you in getting your new business properly started.

Asker

Posted

I am on a payment arrangement to repay a state tax lien for sales taxes from a previous business that went bankrupt. Because I am on a payment arrangement with the Ga Dept of Rev, will I be allowed to open a new business while making payments or do I have to wait until after it has be repaid in full? And would I have to apply for a new sales tax number or do I use the previous sales tax number, if I am allowed to open a new business while making payments to the Ga Dept of Rev for the state tax lien from sales taxes?

Dana P. Shaffner

Dana P. Shaffner

Posted

My personal bias based on the sketchy information provided is that a new company and a new registration would be best. But I would need alot more information before I could advise you one way or the other. At the moment, I am not your lawyer, I am answering posted questions as a service of AVVO. You really should sit down with a business lawyer and plan out this new business.