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.