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What steps do I need to take to close my business?

On Behalf of | Mar 28, 2023 | Business Law |

If you decide to close your business, there are important things you must do. You cannot just walk away because there are things you legally have to do to finalize the business operations and shut the doors for good.

The best way to approach the process is to create a list of what you need to do. You will have to work with the other owners to finalize everything and go out of business.

Dismiss employees

The employment agreements you made with employees will greatly impact how you handle letting go of your employees. If you are strictly at will, you can give notice you are closing the business and that is usually all you must do. However, if you have contracts, you will have to make good on those.

Suspend governing documents and licenses

If you have any licenses, you should contact the authorizing agencies so they know to suspend or end the licenses. You also will need to finalize the closing of any governing documents your business has. You may need to file paperwork with the state to formally end the business as well.

Alert others

You will want to let customers know you are closing. If you have inventory to get rid of, consider holding special sales where everything must go. You also will want to let vendors and suppliers know you are closing the doors and wrap up any contracts you may have with them.

Pay off debts and taxes

One of the final steps you will take is to pay off any debts the business owes. You want to walk away with your books closed, but keep records because you will need to file the final taxes for the business.