Starting a small business is a lot of hard work. It takes time, dedication and many sacrifices to bring an entrepreneurial venture to a successful point. After years of running your business, there may come a time when it is necessary to step away. Whether it is due to illness, retirement or another personal reason, you may find it necessary to have a wind-down plan in place for your Ohio small business.
You may not be able to control the future, but having a plan in place to dissolve your company, if it is ever necessary, can help you face whatever is ahead with confidence. It’s not as simple as closing up shop and turning off the lights. It is important to take the appropriate steps before you step away for good.
What do you have to do?
As the business owner, you should have a say over what happens to your business after you finish with it. There are certain procedures involved with shutting down a business, but what you need to do depends on the type of business you have, your goals for the future and more. Some of the steps you may have to take include the following:
- If your business is not a sole proprietorship, you have to follow the steps that you likely already outlined in your business articles, partnership agreement or other governing documents.
- If your business is not a sole proprietorship, you will have to file certain documents with the state.
- If you are a sole proprietorship, you will have to clear up remaining balances with creditors and close outstanding accounts.
- As you close a business, you would be wise to notify the IRS and any other pertinent local tax agencies.
- When shutting down a business, you will need to cancel business licenses, provide notice to your creditors and settle any outstanding claims.
- You would also be wise to inform any stakeholders involved in your business, sell your business-related assets and collect any debt still owed to your business.
As you walk through the necessary steps to close your business, you may find it beneficial to have guidance from an experienced legal ally to ensure that you do everything possible for the protection of your future interests.
Navigating business law concerns
Legal matters that pertain to your business can be complex, but you do not have to walk through these issues alone. You would be wise to take every measure to lay the foundation for financial security, no matter where you are in your journey.