Whether you are ready to retire, eager to move on to another venture, or just looking to wrap up your business for economic reasons, dissolving a business requires thorough planning, which most business owners don’t realize.
When it is time to end your business, the dissolution process is not as easy as simply turning off the lights and locking up for the last time. There are several things you need to do and many steps to take to ensure you wrap up the right way.
Read more about the dissolution process with a West Palm Beach business attorney here.
As a business owner, you most likely had to file specific paperwork when you started your business. You might have filed Articles of Incorporation, an Operating Agreement, as well as various tax documents.
When it is time to dissolve your business, this step involves filing paperwork, too. This gives official notice to the state and other agencies that you intend to stop operating as a business. It is especially critical to go through all the proper procedures to ensure your business is not taxed after you cease operating.
Depending on your business and your locale, you may need to pay a fee when you file this notice. In most cases, the fee is negligible.
Check out this site here to read more about the paperwork involved in the dissolution process.
Who Should You Tell?
In addition to alerting the state, you also need to let other shareholders know that you are dissolving your business.
Here is a list of who you should tell when it’s time to shut your doors:
Employees – First and foremost, you should tell your employees. It is also important to notify any employees that you intend to stop operating. You should give your employees adequate notice of the dissolution, however, you may understandably want to delay telling your employees about your intentions so that business operations are not unduly disrupted.
This is an area where a West Palm Beach business attorney can help. Your business lawyer is an invaluable source of information and guidance, and can help you work out a strategy that allows your business to keep operating as usual while you prepare to wind down. Your lawyer can also help you assess any employment-related tax liability, such as payroll tax.
Creditors – As you wind down your business, you must let any creditors know you intend to cease operation. If you have significant debts, you may need to consider bankruptcy or some other type of arrangement to make sure your debts are paid before you close your doors.
In many cases, it is possible to negotiate reasonable payments on debts. Creditors typically want to be paid without having to go through potentially costly and time-consuming litigation.
What you absolutely should not do, however, is simply walk away from your business without notifying your creditors or making arrangements to deal with your debts. Ignoring debts will not make them go away; in most cases, ignoring your debt will actually make things worse.
Customers – If you have existing customers, do not simply shut your doors in the middle of the night without any sort of warning. It is best to give your customers notice that you intend to close. This gives you – and them – an opportunity to fulfill any pending orders, complete projects, and take care of any contractual obligations.
Not to mention, it’s a good idea to thank them for their business and patronage for the years you’ve been in service. Don’t burn your bridges.
Learn more here about what you should do when it’s time to dissolve your business.
Do Things the Right Way with a West Palm Beach Business Attorney By Your Side
Dissolving a business does not have to be a negative process. Depending on your circumstances, it may even be a welcome event. Perhaps you want to put a stop to the daily grind as you prepare to retire. Alternatively, maybe you have an idea for another type of business that promises to be more successful.
Whatever your reason for moving on, dissolving your business the right way is an important first step toward getting started on your next adventure. An experienced West Palm Beach business attorney can help you create and execute a smooth strategy for dissolving your business.
Visit here to get started with a West Palm Beach business attorney today.