Moving On: 4 Steps to Take When You’re Ready to Dissolve Your Business

Closing down a business is a big decision, and one that will be a major change in your life. Whether you believe it is time to dissolve a business because it is not making money, or just because you’re ready for a new adventure in life, it is something you will need to handle properly. The following are important steps that you’ll need to take in order to properly dissolve your business. Of course, every business is going to be different depending on the size and type of company it is. Before taking any definitive action, you should always consult with an attorney. You can contact The Reyes Law Group to discuss all your options.

Make the Decision to Close Your Business

If you are the sole owner of the business, this is a very simple process of just deciding that you want to shut down. If you have a business partner, investors, or a board of directors, however, it can get much more complex. There often needs to be an official vote on whether to dissolve the business, and if a consensus can’t be made, there may be legal actions that need to be taken.

Dissolve Your Business with Necessary Government Offices

Filing the proper paperwork with state and federal government offices is very important. This will not only help ensure that you are not charged for future renewals of your business licenses, but it can also be a good notice to creditors and others that new debt can’t be taken out against the business. The specific documents that need to be filed will depend on the type of business structure (LLC, Corporation, S-Corp, etc).

Notify All Impacted Parties

When dissolving a business it is going to have a big impact on many people. You should notify those who are most directly impacted as soon as possible. This will include your employees, creditors, debtors, customers, and vendors. Giving these parties as much notice as possible will help them to make decisions on how they will adjust. While it may not be legally required, it is the right thing to do in almost all situations.

Sell the Assets & Pay Debts

Finally, you will want to sell all the business assets and pay any final debts that are due. If you can’t come up with the money that is owed, you may need to go through bankruptcy to have these debts discharged or restructured as part of the business dissolution process.

While this may be a difficult process, it is something that needs to be done right. Remember, the Reyes Law Group is here to help you throughout the process. Contact us today.

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Written by Reyes Law Group