Critical Steps to Take When Dissolving Your Business

DuPage County business law attorneysClosing 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.

Sources:

https://www.irs.gov/businesses/small-businesses-self-employed/closing-a-business-checklist

https://www.sba.gov/managing-business/closing-down-your-business/steps-closing-business

Steps to Dissolving a Business

Illinois business law, federal business laws, Illinois business lawyer,If you are considering dissolving your business, there are many things to be aware of before you begin the proceeding. The first is that you should speak with a business attorney to determine the bests steps to take and whether or not your business is applicable for tax breaks and what financial legal burdens you have to handle before you walk away. Also be aware that you have to file an annual tax return for the year that you go out of business, even if your business closes in the first quarter. Other financial burdens that must be resolved include the closing of all accounts and the resolution of all business debt.

These tax returns are in addition to the reports that you must file to officially dispose of your business, which must be filed no matter what type of business you operate. This is true for a corporation, S corporation, LLC, or trust. If you fail to file these dissolution papers, you could still be liable to pay taxes and filings. If you are operating as a partnership or sole proprietorship, you may not be required to fill out these dissolution papers. If you have any question as to whether or not you should file these, it should be discussed with a legal professional.

Another major step is to make sure that you have canceled all registrations, permits, licenses, and business names. This ensures that you will no longer be responsible for any additional payments and responsibilities. Most of these filings will be done at the state or local level, which is why it is important to work with a legal professional who is in your area and familiar with local laws.

The next step to closing a business it to make sure that you have complied with all employment and labor laws. The Worker Adjustment and Retraining Notification Act (WARN), for example, requires that all employers who have 100 or more employees provide at least 60 days (two month) written warning that the business will be closing.

If you or someone you know is considering closing a business, the most important step is to seek legal counsel. Contact an experienced DuPage County business attorney today. Call the Law Office of Stock, Carlson, Oldfield & McGrath LLC 630-665-2500 to schedule a consultation.

Sources:

https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Closing-a-Business-Checklist

https://www.sba.gov/content/steps-closing-business