Sometimes the business owner would like to retire the business. Sometimes, its the best decision. If you are in that position, there are a few steps to follow. You must first agree with others who may hold stock or have otherwise invested in your small business that the business should be closed. If your business partners disagree, you may be able to get out of the small business without going through all the trouble associated with closing it or selling it. Always explore the options. However, if everyone is in consensus that the small business should be closed, you must follow a few steps to ensure that, when closing the business, all the necessary bases are covered. Your first step is to notify the government agencies that regulate your small business that you will be dissolving the business. Local, state and federal governments may need to be notified, so be sure you investigate who should be informed that your business is closing. Next, your permits, licenses, and other business paperwork must be taken care of, canceled, or suspended as per legal regulation. After that, you must ensure all debts and taxes are paid and current. If you are unable to pay your debts, you must meet with your lending institution to agree upon a payment plan. Lastly, notify all creditors, employees and customers. You do not want your business to simply disappear off the face of the earth. Your employees need to know that they'll have to seek employment elsewhere. Likewise, your customers will need to know that theyll have to find another place to do business. One of the most important parts of closing your small business is dealing with the taxation aspects of it. There are several things you must do to resolve your tax situation. If you omit one of these details, the IRS may be seeking restitution long after you thought your business was closed. (A detailed list of tax-related items and issues that you must take care of can be found at the IRS website.) Ilya Bodner
Small Business Owner
National CorporationAbout the Author:
Over the course of the last 5 years as an entrepreneur I have successfully launched, managed, and sold off several businesses. Each organization started has added some value to my understanding of the business world today. My philosophy has been that 9 things out of 10 that I try will fail, but that golden one is always worth the battle. In my experience that has proven to be the case and my successful businesses still operate today under the management of those whom I have sold off to. The latest project is Initial Underwriting Group, a corporation comprised of two concepts: 1) business credit building and 2) business loan underwriting.
