October 08, 2021

Step by Step guide to Closing your Business

It is difficult to decide to close down your business; however, it may be the best thing for you. Sometimes financial troubles can force the decision to close a business, but sometimes it is just time to step back and shut things down. No matter what your reason is for closing your business, there are some things you have to do to ensure you legally close down your operation. The Brockmeier Law Group understands how difficult it can be to shut down a business lawfully and is ready to help you through the process.

What do you need to decide and do if you are closing your business?

The first thing you need to do when deciding to close your business is to record your decision in minutes of a business meeting or with a written consent form. If required, an Irvine business litigation attorney can help you write up the consent form and document your decision to close your business.

Suppose you have been operating your business as a corporation or limited liability company. In that case, it officially needs to be dissolved to show you are no longer liable for business taxes and fillings in your state. Additionally, all permits, licenses, and fictitious names need to be canceled.

If you have a partner, you could close the business together or sign everything over to your partner. To learn more about what you can do in a partnership business, speak with an Irvine business attorney.

What documents do you need to ensure are set?

In addition to your written consent form for closing your business, you also need to fill all necessary forms out for your state. For example, in California, you must file a certificate of dissolution and a certificate of election to wind up and dissolve with the California Secretary of State. Again, a business attorney Irvine, can help get all paperwork submitted to close your business.

What about taxes? 

You may also have to obtain tax clearance or consent of dissolution from your state tax board showing all taxes for the business have been paid.

How can an attorney help? 

An attorney can help you with your paperwork, ensuring everything is submitted correctly. Additionally, they can help negotiate any terms with a partner and settle any unresolved business matters.

When preparing to close your business, call the attorneys at Brockmeier Law Group to schedule an appointment and learn more about the process.