Sometimes, things don’t always work out as we want them to, even in business. When you think your company’s better days are behind it, it may be time to close shop and restrategize. Dissolving a business is never an easy decision, especially if you have employees who depend on the job.
However, it is unavoidable in some circumstances, which is why you should be prepared for such an eventuality. So here is how to go about it.
Agree with all stakeholders to shut down the company
While it may not be plausible to get everyone on the same page, it is necessary to have the backing of the majority, if not all, stakeholders. That way, efforts will be more streamlined since there will be little to no opposition.
Notify and pay all employees and other creditors
Your employees need to know in advance that the company is shutting down to plan accordingly. After paying any pending or redundancy wages and finishing up with all that’s required with your former employees, you need to handle any outstanding business debt. All financial obligations, including state and federal taxes, should be fully met to avoid any problems ahead.
Filing articles of dissolution
This is the legal bit of dissolving your business. Ensure you get all the paperwork done right when filing articles of dissolution to prevent any liabilities on the company going forward, such as state fees or annual reports.
Make sure there are no loose ends
The step-by-step procedure can get quite complex, especially when the business has assets to divide among shareholders. Therefore, taking the right approach and ensuring that everything is done by the book is very important. That way, you’ll be sure that there will be no legal issues now or in the future.