This morning on anchor.fm, Chris Werner discussed some tips and things to consider when closing or reorganizing a business. Since each business is different and each situation is different, there is no single answer for exactly what you need to do. As always, I recommend that you discuss your situation with your attorney to form a specific plan. With that said, there are some things you should be considering:
As you begin the process of closing or reorganizing your business, you should get you team together. Depending on the business, this may mean key employees, officers, investors, your accountant, and your attorney. The idea is to get everyone on the same page and make sure all tasks are accomplished in a timely fashion.
Whether you are closing or reorganizing, you want to take care of all outstanding business, if possible. Make sure accounts payable and accounts receivable are up to date, finalize your payroll, payoff and close any loans or lines of credit.
You don’t want to leave any open accounts for the business, so make sure you cancel things like you phone service, credit cards, internet, insurance, etc. Again, the goal here is to get everything settled and not to leave any loose ends.
This will vary slightly from state to state and depending on how the business was organized, but most businesses will need to file some kind of certificate of dissolution. This is a good place to talk with your attorney to make sure you file everything properly.
Obviously, this was just an overview, and the specific tasks for your business might be different. However, keep in mind that all of this will be much easier if you have kept up with paperwork and organization while you were running your business. Please reach out to us directly if you have any specific questions, and listen to Chris discussing this on anchor.fm.