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ANNOUNCEMENT: We are dedicated to your legal needs and available during this difficult time. In order to do our part to help stop the spread of COVID-19, we are offering virtual consultations for both new and existing clients upon request. Click HERE to contact us and request a consultation by video, telephone or in person.

How do I close my business?

On Behalf of | Sep 21, 2022 | Business |

If you wish to end your business, there are some steps you will have to take. You cannot just close the doors and call it a day.

The U.S. Small Business Administration explains that you will need to tie up loose ends and ensure that you adequately handle all business before shutting down. It can help to create a list of things you need to do because some of the tasks will take time to complete. Not everything will be done quickly. If you are a sole proprietor, you can take care of everything on your own, but if not, then you will need to work with the other owners.

Legal aspects

You need to begin by ensuring you know what legal steps you have to take. You may need to contact agencies and other entities to halt licenses or suspend your governing documents. You may need to dissolve partnerships or cancel permits you hold. You likely will need to file some documents with the state to finalize your decision and formally end the business.

Employees

If you have employees, then you need to be aware of employment laws and how you must handle ending their employment. You may need to pay outstanding wages and benefits. You should have someone handle these aspects and be available after the business closes to provide any assistance needed.

Customers

You will need to handle all obligations to customers. You need to make deliveries and tie up outstanding invoices. Remember, you still need to honor the terms of any credit extended, so be ready to deal with that after you close the business.

Other obligations

You will also need to pay off the business debts and handle any outstanding obligations that your business has. Be sure to keep records because you may need them for taxes or other legal situations in the future.

Wrapping up a business can be complex, but it is essential to ensure you handle every detail.