Closing a business is a complex, multi-step process that must be done with the utmost efficiency. Failure in any aspect can result in serious consequences with both legal and financial implications. If you are facing the closure of your business, the following information can help. It also explains where and how to find experienced assistance.
Creating an Exit Strategy
No two companies are exactly the same, and it is unlikely that any two will go through closure in exactly the same way. This is why exit strategies are so critical. An outline of whom you will need to talk to, tasks that will need to be completed, an overview of what you hope will come of the closure, and an examination and possible solutions to any issues that may arise, this critical step can help to ensure you have covered all the aspects of your company's closure. It can also help you stay focused on the next task at hand as you navigate through the arduous process.
Dealing with Partners, Investors, and Employees
Unless you are a sole proprietor, the closure of your business is likely to affect many others, including any investors, partners, or employees. Partners must be a part of your final decision, and the conclusion should be documented in writing. Investors who have not received their agreed upon share should be consulted with to ensure you are not left indebted to them. Employees should be given notice of the closure so they have time to secure new employment. You must also comply with all labor laws and supply them with their final paychecks upon their last day of employment. If you have any questions or concerns about how to work with your partners, investors, or employees during a closure, speak to an experienced business law attorney for advice and assistance.
Settling Your Financial Obligations
Closing a business does not release you of any financial obligations you may have. You must still notify the Internal Revenue Service and pay any owed taxes. You must also contact creditors and those that currently owe you funds for services or products rendered to either settle or comp up with a payment arrangement you can each live with. If you cannot do this successfully, an experienced business law attorney may be able to negotiate the matter on your company's behalf.
Contact Our Experienced DuPage County Business Law Attorneys
At Stock, Carlson, Oldfied & McGrath, LLC, we take a personalized approach to ensure your company's best interests are preserved. This applies, regardless of whether you are starting a new business, negotiating contracts, or closing down. Learn more about how our seasoned DuPage County business law attorneys can serve your company. Call 630-665-2500 and schedule your consultation with us today.