The National Directory of Certified Public Accountants

Ask A CPA - Buying & Selling a Business

When I Buy A Business, Should I Sign The Note Personally?

You should always try not to sign personally if you don't have to. However the seller or the bank will usually request your personal guarantee on any note. The more money down and collateral at risk, the less likely, and your personal signature will be required. A good CPA can negotiate and work with your lawyer to minimize your personal exposure.

If you need professional help with "Buying & Selling a Business" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.