Most businesses we represent receive an offer within 90 days and close within three to six months. In Fairfield County, the Connecticut tax clearance process is the step most likely to extend that if it isn't started early.

Yes, in most asset sales. The purchaser of a business can be held liable for the seller's unpaid sales and use tax, up to the purchase price, unless a Tax Clearance Certificate is obtained from the Department of Revenue Services before closing. Buyers and their lenders routinely ask for it. Requirements vary by transaction, so confirm specifics with Connecticut counsel or DRS.

Typically within sixty days of DRS receiving a complete request, which is why we raise it at the valuation stage rather than once a buyer is under contract. A late start here is one of the more common reasons a closing date slips, and it's entirely avoidable with enough lead time.

DRS either issues a clearance certificate confirming no liability, or an escrow letter specifying an amount to withhold from the purchase price to cover any outstanding tax. Either outcome lets the closing proceed. What it means practically is that your net proceeds shouldn't be treated as final until one of the two arrives, so we build that into the closing timeline rather than into the number you see on day one, before your accountant has confirmed either figure.

Yes. Liquor permits in Connecticut are issued through the Department of Consumer Protection, and a transfer requires its own application and approval, separate from the tax clearance process. Requirements vary by transaction, so confirm specifics with DCP or your attorney.