Many business owners decide that it’s time to shut down their business for many reasons. Sometimes the decision is taken at the end a long period of business or following a significant revenue loss. Other times it might be due to the fact that the company no longer has viable financial prospects or contracts have expired, or the market is shifting too quickly to continue to compete.
It is essential to create plans, and then implement it. A certified accountant or lawyer can assist you in determining the best method to get rid of the assets of your business, and also make sure all legal obligations are met. This includes filing dissolution documents and rescinding all registrations, permits, and licenses, paying taxes due and closing business bank accounts. Notifying creditors, paying debts and paying financial obligations are also included.
Other important considerations include the need to notify customers and refund the money for orders that have not been fulfilled. It’s also crucial to inform employees and give them as enough notice as you can, so they can plan their departure. This will help maintain your relationships and help avoid unnecessary frustration. It’s also a good idea to analyze and gather company’s records to properly close out the company finances, such as settling financial obligations, releasing final payroll, and closing company credit cards (which may impact personal credit ratings).
It’s time to end your company. In the event of a failure to complete any of these tasks could result in penalties or additional fees. The IRS has an extensive list of tasks you must complete. We also recommend that you contact other government agencies, like professional licensing boards and state, local or federal tax agencies.
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