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When it’s Time to Close Your Business

Many business owners decide it’s time to shut their doors for different reasons. Sometimes the decision is taken after a lengthy period of business or following an enormous loss in revenue. Sometimes it’s because the business no longer has financial viability the contracts have ended or the market is changing too rapidly to remain competitive.

Whatever the reason, it’s crucial to make a plan and follow it through. A professional accountant or lawyer can help you decide the best way to close the loop and dispose of your company assets and ensure that all legal obligations are satisfied. This involves filing dissolution documents as well as rescinding registrations and permits and paying any outstanding taxes, and closing business accounts. Notifying creditors, settling debts and settlement of financial obligations are included.

Notifying customers and returning deposits due to an unfulfilled order are also important considerations. It is also important to notify employees and provide them with the most notice possible so that they can create their exit strategies. This will ensure that your relationships are maintained and avoid unnecessary stress. It’s a good idea to analyze and gather business records in order to properly close out your company’s financials. This includes resolving any financial obligations, issuing the final payroll and closing company credit card accounts (which can impact personal credit ratings).

It’s the time to close your business. Failure to complete even one of these tasks can result in penalties or additional costs. The IRS offers a checklist of the things you have to complete, and we suggest that you check with any other government agencies, such as professional licensing boards as well as local and federal tax agencies.

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