A Collection of Articles About Closing A Business
You’ll find a selection of hand-picked articles and resource pages provided by a variety of authors included in this post to give you the knowledge you need to close a business, but first, a few brief considerations.
Closing a business isn’t as easy as just closing the doors and walking away. There are many steps you must take to make sure you close it correctly, and nothing comes back in the future to haunt you.
You want to make sure all your legal and financial obligations are taken care of and a lawyer completes everything and absolves you from any liabilities.
The last thing you want is a large amount of money that you must pay because you weren’t aware of it. For example, you have had the business for two years, but you have signed an airtight lease for five years that requires you to pay the full amount whether your business is running or not.
You also may have products you have sold that have a warranty and that is your responsibility. An example may be a machine builder that has sold numerous customized machines with warranties.
Another issue to consider is you need to make sure the proper forms are completed to notify your local, state, and federal governments that your business has closed its doors.
Closing a business must be executed correctly, or problems may come back to haunt you. I would suggest you seek the advice of a professional so that you’ll process all the issues legally and put everything behind you without worrying about it in the future.
A few issues to consider may be bankruptcy. If your business is broke, then you may need to file for bankruptcy. It may be the right thing to do. Consulting with a professional can help you decide on the best route to take.
I had a friend once that was trying to sell a business so that he could get out of it. I asked him what he wanted out of it. He told me he just wanted to sell it for a price that would allow him to pay off the debts owed by the business.
I told him I have an idea. Rather than looking for a buyer and selling it for a price that would pay off the debt of the business, why not sell it for No-Money-Down and the buyer assumes all the debt and liabilities.
This will open the doors to many buyers that don’t have the money to buy the business but would love the chance to own and run it.
He sold it within the week, to one of his employees. He was happy because he was free to do other things, and he got rid of the business. The new buyer was happy because she didn’t have the money to buy the company, but with this situation, she was able to make the purchase.
Would selling your business and have the new buyer assume all the debt work for you? It’s something to think about.
Have a look at the resources I have included in this post that will help you close your business legally and without worries.