Closing a business or thinking about it? Well, it can be as easy as just closing the doors, but usually closing a business requires a few more steps than that. Of course,the best way for closing a business will depend on how your business is set up. Unfortunately, there is no easy answer because there are as may ways to set up a business as there are ways to close it and for each way a business is set up there might be multiple ways to successfully close it. Therefore, much thought and strategy usually must accompany closing a business.
If you are thinking about closing a business, you should think about many different aspects of your business, including whether your business is online or brick and mortar; in what form your business is functioning, is it a sole proprietorship, a partnership, a limited liability company, a corporation or some other structure; what, if any, liabilities are outstanding; what assets the business has to satisfy any liabilities; whether all the persons involved in ownership of the business agree to close it; and that is just a start.
Depending on your answers to the above, you will have to take different avenues to successfully close your business. Although closing a business seems like it should be a straightforward affair, it can be quite complicated to do it correctly and keep yourself and your personal assets out of the reach of someone who thinks they have been wronged by your business dealings. Some of the various steps you may need to take in order to close your business are to file the appropriate final tax returns (and sometimes you will need to file past tax returns that will bring you up to date if you are delinquent in filing any returns); notifying employees and paying any employment taxes due; cancelling any licenses or permits needed for your business (things like a resale license, etc.); making sure if you have a business entity that you have held the appropriate meetings and prepared and filed the required documentation; and there may be a multitude of other things that you will need to do in order to successfully close your doors, real or virtual.
In short, it is best to consult with a professional, usually an attorney, who is well versed in working with clients who are looking to close their business. So, if you are thinking of closing a business, before you just close the doors and throw away the key, you should seek out the appropriate advisors to make sure you have taken all the appropriate steps so that you are not surprised later when something comes up that puts your personal assets assets at risk.
If you are needing help with closing a business, Integrated General Counsel can help you determine your next steps. If you are ready for a results-driven plan of action, contact us either by telephone at (925) 399-1529, schedule yourself into our calendar for an appointment at a time convenient for you, or complete the Contact Kristen form and we will get back to you.
- California’s Workplace Violence Protection Requirements - July 22, 2024
- The Corporate Transparency Act and Its Impact on Beneficial Ownership - July 22, 2024
- Cease and Desist Letters to Protect Your IP and Brand Identity - June 14, 2024
