Is it legal for a company to pay business and personal taxes?

I am buying a company and I will be making payments over a couple of years unless

I can pay it off sooner. In the contract the seller says the company must pay all

personal and business taxes. So paying them a weekly amount plus 10 of my snow

contracts for 3 years and paying all the taxes it will take me broke. This is a

very small company. We have about 45 customers and we cut grass. prices range

from 35.00 to 220.00, most being about an average of 50.00. She is also getting a

check from another company and has a disabled daughter so she get social

security. Please advise

Asked on January 10, 2018 under Business Law, Maryland

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

It is legal IF you agree to it--anyone (and any company) may agree to make tax payments on behalf of another. If you find that the deal does not make sense for you, either negotiate a better one or walk away from the deal.
Note that if you have not signed a non-competition or non-solicitation agreement, you could go out and start your own grass-cutting business.


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