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My Husband Passed Away, I Need Advice on His Business!!!

by Luvdogz, Window Shopper

  • Created: February 18, 2010, 1:28 pm
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2 comments

Hi,

My husband passed away on January 5th of this year.  We have a very small office cleaning business that was under his name only for tax purposes.  I am authorized in all aspects of the business from writing checks to cashing checks at the bank.

 

Before my husband died, we were in the process of choosing a family member to continue the business with us getting a certain percentage of the profit.  UNFORTUNATELY, my husband died before this had been finalized.  Now I have no idea what I'm doing.  My niece is going to take over the two accounts we now have but I don't know how to go about doing this.  Should I transfer the business over to her name (which I've heard can be probated and costly) or should I close the business and let her restart it in her name?  I know nothing about either but I do know my husband did not want his son to get his hands on any of it due to his stealing in the past.  I've have been searching the internet for weeks but I cannot find straight- forward answers.  I seriously need step-by-step instructions on what to do!!!!  I went to my local City Hall yesterday but they messed me up totally!!!!  I thought all my niece would need was a license or permit but they have me going before the Board of Appeals because I said she would be running it out of her home which really means using her cellphone.  Maybe someday if she gets lots more accounts she'll need office space but not now.  Please HELP me in ANY way you're able??????  I did all the administrative work and lots of cleaning over the last 16 years but I have no knowledge of transfering one.  Thank you for any help, info, forms, links, etc. that you would send me!!!!  I appreciate this more than you could know!!!!!!!!!!!!!!!!

Tags: Discuss Popular Topics, Other Business Issues
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CrestCapital | Creator | 2/19/2010 - 8:39 am

Following are a couple clarifying questions: (1) Is the business incorporated (have you filed corporate tax returns in past years)? -or- is the business a sole proprietorship (have you filed a Schedule C with your personal tax returns in past years)? (2) Does the business have written contracts with the two accounts? With more specific background info on the actual structure of your business, youll receive more specific advice from the community on this forum. Following are a couple clarifying questions for you: (1) Is the business incorporated (have you filed corporate tax returns in past years)? -or- is the business a sole proprietorship (have you filed a Schedule C with your personal tax returns in past years)? (2) Does the business have written contracts with the two accounts? With more specific background info on the actual structure of your business, youll receive more specific advice from the community on this forum.
Professional Web Site: http://www.CrestCapital.com

BizResearcher | Window Shopper | 2/23/2010 - 1:00 pm

I am sorry for your loss. I know from experience how hard it is to deal with all the unknowns in a situation like yours and all the decisions that have to be made quickly. It can feel overwhelming at times, but it will get better. I promise. As the previous poster mentioned, the answer to your question is dependent on whether the business was a sole proprietorship, an LLC, or a corporation. If it was a sole proprietorship and you were filing taxes using a Schedule C with your personal tax return, then the business ends with the death of your husband. All the assets of the business will be considered his assets and the debts of the business (if any) will be considered his debts. For a sole proprietorship, contact the state or county agency where you registered your business name or look for their web site. Then look for a form to cancel or close the business. Once you file that, your niece can file a DBA using a different name. You may not be able to sell the business equipment to her at this time if your husband's estate has to go through probate. As a sole proprietor, the equipment is considered his personal assets and must be accounted for in the probate proceedings. If the two of you had a family trust agreement, then you become the surviving trustee and you can sell the equipment. Family trusts are not subject to probate. If you had a local business license you will need to cancel it. If you had a sales tax permit you will also need to cancel it. If the business was an LLC or a corporation, it is considered a separate entity from your husband and the requirements are different. If you have an attorney handling the probate, you might want to talk with him/her about the business issues. If you had a family trust, you will need to have an attorney update the agreement and you can discuss the business with her/him at that time. They can help you through the process.