Steps for dissolving a business

Steps for dissolving a business

On Behalf of | Jul 27, 2018 | Uncategorized |

There are a variety of steps involved in dissolving a business and it is important to know what they are and be familiar with each. The requirements may also vary by state so it is also important to be familiar with the requirements in your state and is a good idea to be familiar with business law generally.

Business owners may want to wind down their business for retirement purposes, financial reasons or other reasons. The dissolution of a business process begins with closing the business according to the process laid out in the business articles. Business articles are not something that sole proprietors will have. The next step is to file with the state letting it know that the business has been closed. Though sole proprietors also do not need to meet this requirement, they will want to make sure to conclude all outstanding business with creditors and others.

The next step is to notify the IRS and all state and local tax agencies of the closure. Notifications to creditors should also be made and businesses licenses should also be cancelled as part of the process of dissolving the business. All claims with creditors should be settled, any money owed to the business should be collected and the business owner can sell and distribute the assets of the business. There are other steps it can also be helpful to take and because each step is fairly detailed, it is important to be intricately familiar with what the steps are and the requirements of each.

The process of winding down a business can be complex so it is useful for business owners seeking to close their business to be as familiar as possible with the dissolution process and to have trained guidance. Dissolving the business according to these steps can help the business owner close a chapter and move forward without concerns related to the business.