Have you ever wondered what the point of going to work is? All that effort you put into your business, all that time and money, for what? Have you ever dreamed of saying, “I quit,” and walking out for good?
Unfortunately, if you are a business owner, you do not have the option of a dramatic exit. Sending a pile of papers flying, jumping into your car and skidding out of the car park in a storm of dust before driving non-stop to the west coast, will only lead to more problems. If you wish to call it a day, you need to dissolve your company in the correct legal manner.
These are some things you must do if you wish to close your business for good:
- File a resolution to dissolve: This paperwork needs to be signed by the partners or directors and filed in the state you started the business. It is the legal way of telling people you are closed for business.
- Fulfill your obligations: Tidy up any outstanding business; if a customer has paid you for something, you need to deliver or refund.
- Settle your debts: If you owe money, you need to pay up or let them know you cannot do so.
- Liquidate your assets: Sell off anything that has not been used as loan collateral.
- Notify the tax office: If you don’t, you could find unexpected additional bills. Doing this promptly and accurately is vital for your employees, as well as your company.
- Notify interested parties: There are many people who need to know when you close your company including customers, banks, suppliers and insurance companies.
- Split what’s left: If you have any assets remaining, check your business contract to determine how you need to distribute them.
Seek legal help to ensure you have covered all your obligations when dissolving your company. Then, and only then, can you shake out your ponytail, throw your suit in the dumpster and drive off into the sunset.