Legal Support for Insurance, Businesses and Individuals

Closing your company? Make sure you take the right steps

On Behalf of | Jun 26, 2020 | Uncategorized |

When you’re ready to close your business, you may think it’s as easy as shutting your doors and moving on. The truth is that there are multiple steps you need to follow if you want the closure to go smoothly and to protect yourself in the future. 

To start with, you will need to make sure you and any other owners agree to the business closing its doors. If you do agree, then it’s time to talk to your attorney and a business valuation expert, so you can see what your business is worth. That’s when you’ll want to list all of your assets and take inventory, so you have all the information you need to make your final tax return. 

Throughout this, you’ll want to rely on a timetable, so that you know reasonable time frames for every part of the dissolution.  For example, if your timetable shows it will take five months to close completely, you may want to hold off on taking a vacation or taking up a new job elsewhere.

Did you know that you have to announce that you’re closing? This gives you employees, customers, creditors and others time to speak with you about the company’s dissolution and give you time to resolve any issues.

If there are contracts that extend longer than your closing date, you may need to renegotiate or find ways to buy out the contracts, so you can move forward. 

Finally, you’ll be able to close your business, sell your business assets and pay off any remaining debts. Your attorney can help you put together an outline of all the things you need to do and to help you move forward as you close your business down.