I purchased a route with 2 machines for $1000 ($500 a piece). I was referred to this Guy i purchased them from thru a reputable friend.  When i asked for financial statements,rental agreements with locations,or tax records He did not provide. I thought I would at least take a look at the routes and machines. I met up with Him to do this and we saw three machines at three locations. The first was an apartment complex laundramat and this was the ONLY machine there. I was impressed with the fact that it was almost empty so we had product and refilled it. Then He took out $120.00 from the machine. Then He introduced Me to the Apt Manager. She was nice and the first thing She asked Me was " How often will You be filling the machines?" So i could see that even though no paperwork was in place there was a great repoir between the mgr and the guy who i was purchasing the route from. The warehouse where the other machine was was the same way but even more traffic 120 employees and again the only machine there!!! This location was over $300 in the machine... So i said to hell with it and purchased them both... i created an agreement and got them notarized but i do have questions still.  Would i need an LLC for these two locations and how will i set this up on taxes? Is this common place in this industry for routes to be sold or attempt to be sold with no paper work? It appears to Me that the guy i purchased them from got the locations from a previous location machine vendor and set up these accounts and did a great job maintaining them and the guy who i purchased them from did the same thing....My question to the group is also should i even set this up to get taxed because i do not have any agreement other than what i have and i dont have any agreement on paper with the locations...