Are you closing your business? Here's why you need an attorney for a business dissolution.
A business dissolution can be a complex matter. There are certain steps you must take to protect yourself.
In order to make this process go as smoothly as possible, you'll need a knowledgeable attorney to properly handle the legal aspects of a business dissolution. Additionally, you may want an attorney to assist with and check over the following:
- You'll need every business operator or owner to agree to the dissolution.
This is straightforward and simple if you are the sole proprietor of the business. You don't need anyone else's approval in order to proceed with the dissolution.
If you've been conducting business as a partnership, LLC, or a corporation, you'll need your business partners to agree to the dissolution. Then once you have the agreement, you will have to follow all the rules and procedures as laid out in your state's business statues as wells as your business's organizational documents. These meetings may need to be recorded.
- Formally dissolve the business with the government.
Dissolve your business with your state and local government so that you stop being liable for business taxes and debts. Different states have different required forms. Depending on your state and your type of business (partnership, LLC, sole proprietor, or corporation) you may have additional steps you have to take to receive clearance before you can formally dissolve your business.
- Pay payroll tax.
Don't forget about your employees. Pay your payroll tax and file all the necessary employment tax paperwork. If you don't the IRS will go after your personal assets in order to pay these debts.
- Pay all your other taxes.
File all the forms for your income taxes. Submit paperwork for the final business sales taxes that you collected.
- Start canceling business licenses and permits.
Check with your state as well as your local county to ensure that all your licenses and permits were canceled so that no one else can use them.
- Let everyone who is directly and indirectly associated with the business know that you're dissolving the business. Do this soon so that your creditors don't have a huge timeline to request a debt.
Let banks and lenders know that you're closing your doors so that you can close accounts and pay off loans.
Give your landlord notice that you're closing your business so that you are charged extra fees for breaking your lease. You'll also want your deposit returned from your landlord and any other service provider.
Notify your business insurer of the business's closure. An attorney can assist with any potential liabilities that might cause legal issues.
Give your employees sufficient notice of your business dissolution.
Notify any suppliers that you'll be making your final orders.