I have a qualifying person I want to use for my new company but they have some IRS problems with their existing company. Will that debt come with them to my company?
1 reply
Dec 11, 2019
The financial problems of an individual shouldn't have any official impact on the business, itself. i.e. If an employee of a business owes money to some other person or business, or to the IRS, those debts can't then be tied to the business simply because the employee works for the business.
Note, though, that when applying for a contractor's license in Arizona, the Arizona Registrar of Contractors will perform background checks on the qualifying person as well as other individuals in charge of the business. So, it's certainly possible that IRS issues or other financial problems could serve as a red flag. But, I'm not sure whether that would even come up in the background check or whether it'd be a serious threat to a business' ability to obtain a license.
For more basics on Arizona licensure: Arizona Contractor’s License: Who Needs One and What Are the Requirements?