Owning and operating a small business takes years of dedication and hard work. Entrepreneurs know that success never comes easy, and after everything you've put into your business, it's important to think about what is next. For you, that may mean dissolving your Utah business.
If you decide at some point that you would like to shut down operations instead of selling or passing it along to a family member, there are certain steps you have to take. There are both legal and financial considerations for you, and it can be beneficial for you to familiarize yourself with this process before you are ready to proceed. Preparation and knowing what to expect can help you avoid complications and setbacks.
Closing up shop
If you want to close your business, it is likely that there will be more involved with this process than simply turning out the lights and locking the door. You will probably need to consider the tax implications of this step, as well as any legal requirements you may have to meet. Some of the steps you may have to take include the following:
- If your company is partnership, corporation or jointly owned venture, you will need to notify interested parties and follow what is written in the articles drafted when forming the business.
- You may have to file certain paperwork with the state. Even if you do not, it is smart to go ahead and settle everything with your lenders, creditors and others to whom your business may owe money.
- It is smart to find out if you need to notify the IRS or do anything to settle with other tax agencies.
- As part of closing your business, you will want to cancel your business licenses.
- You will need to collect whatever money people still owe your company and pay remaining balances to creditors.
- Finally, you may want to sell any valuable assets owned by your business, such as large equipment, tools and more.
Walking through the process of shutting down your business can be just as complex as it was to start your business. Depending on your company, the complexity of your financial situation and other factors, you may have to discuss your concerns with an experienced business law attorney.
A complete assessment of your case can help you understand how you need to proceed when it is time to dissolve your business. If this is the right step for you, knowing what to expect can save you time, money and stress.