Whether you are planning to retire or venture out into a new business project, the sale of your business is a very important stage, just as is the purchase. There are items you must take care of before handing over the keys to your business.
Now that you have decided to take action and proceed with your business closing, it is important that you and your partners decided how you will dissolve the organization.
Here are some simple steps to take and follow when preparing for your business closing:
1. Get Expert Advice.
This sale of your business is a delicate process and it is a good idea to have a knowledgeable attorney and certified public accountant handy. They know the caveats to look for when drafting all closing documents and filing follow up tax forms.
2. File Your Dissolution Documents.
Failing to dissolve your company may cause potential liabilities in the future as far as taxes and filings.
3. Cancel all Registrations, Permits, Licenses and Business Names,
This will protect things like your finances and reputation. This will also depend on whether you, as the Seller, and the Buyer decide to sell the trade name and transfer licenses, etc.
4. Comply with Employment and Labor Laws.
Ensure that you have paid all of employees by their last day of work. Other requirements may require you to pay for unused leave time.
5. Fulfill All Financial Obligations.
Taxes, Yes!! The department of revenue requires proper documentation, when filling tax returns and upon the dissolution of your business.
6. Keep All Of Your Records.
Keep all of your closing documents in a safe place. It is advisable to keep your records for at least three to seven years, depending on your profession.
At Gulati Law, we have handled numerous business closings from restaurants, gas stations, convenience stores, medical centers and much more. If you have any questions or are in need of a Business Closing Attorney we would be happy to help!
Source: SBA Gov