Closing Your Business Down Properly
Sometimes, no matter how much hard work and time a business owner puts into their business, things just don’t work. Maybe the business owner was unable to drum up enough customers to make their business profitable, or maybe they did not read the insurance dispute settlement info properly and wound up owing more money than they thought they were going to. Occasionally a business owner may also find that they have other job opportunities available to them that they wish to take advantage of as well. There are definitely a wide number of reasons why someone would need to close their business, but before you close your business make sure you know how to do it properly.
There are a number of things that you are going to need to do in order to make sure your business is closed the correct way, even if you own a small business. First, make sure you engage all the professionals necessary to do so correctly, this may include a lawyer, an accountant, and possibly many other consultants. You will be required to prepare a list of all of the assets that you have for your business and you will likely also be asked to perform a full physical inventory as well.
Once this has occurred then a valuation of the business can begin. Evaluation of business determines exactly how much your business is worth. This is an important thing to do even if you do not plan on selling your business to someone else. You will then need to prepare a very detailed plan about closing your business making sure to assign the correct responsibilities to the correct team members. You will be required to conclude, or transfer, all of your contractual obligations and to then dispose of, or transfer, your assets. Then you simply need to settle all of your accounts, including those payable and those do, and prepare the final financial statements necessary by the federal government for your tax returns. After you file articles of dissolution, receive your tax clearance notice, and closure bank account you then simply need to store all of your business records for at least five years to have successfully closed your business for good.