All businesses go through ups and downs, and many will suffer cash flow crises. After some tough times, you may be tempted to walk away from your business - but closing down a business is not a decision that you should make in a fit of frustration. Starting a business is so exciting, but the day-to-day grind of running a small business can wear down even the most intrepid entrepreneur. That said, if you decide this path is the right decision, here is a comprehensive closing a business checklist that will highlight some of the big issues that [...]
For a variety of reasons, entrepreneurs may decide to close the business they worked so hard to start and grow. Situations change and the need to dissolve an LLC or corporation may need to be addressed. An entrepreneur can grow tired of small business ownership or may simply want to retire. Possibly the business has been losing money or it isn't as profitable as it needs to be. Regardless of the reasons, an LLC needs to be dissolved in a formal and methodical manner. This task doesn't have to feel daunting. Our six easy steps will provide a guide [...]
You're not the first owner to consider closing down a business and you certainly won't be the last. But it is a big decision and one that should be taken lightly. Regardless of your final decision, you need to prepare yourself for the necessary steps involved in the process. Closing down a business requires a certain process be followed. This process is just as important as the steps required to start a business. I have not failed. I've just found 10,000 ways that won't work. ~ Thomas A Edison 12 Effective Steps for Closing Down a Business 1. Admit [...]
Just because you’ve stopped working with customers, taken down your website, and aren’t making money from your business, it doesn’t mean your company is considered “closed.” Closing a business, whether an LLC or corporation, requires formally dissolving it with your state. If you don’t, you could be stuck with the responsibilities of filing your inactive business’s annual reports and state/federal tax returns. And you may be legally obligated to renew your business licenses and permits, too. All of that costs time and money. So if you’ve stopped doing business and are sure you want to retire your company, [...]
If 2015 brought the end of a business for you, don’t sweep it under the rug. You’ve still got legal responsibilities to handle to avoid penalties and fees.
Someone once told me that a true sign of a successful entrepreneur is the ability to know when it’s time to throw in the towel and move on. One failed business doesn’t define an entrepreneur. Plus, when one door closes, another usually opens. Closing a business doesn’t just mean selling your assets and calling it a day. You’ve got to go through the requisite steps to ensure your business is legally closed and that you’ve properly wound up your business affairs. Otherwise, you could be personally responsible for filing annual reports, filing state/federal tax returns, and maintaining miscellaneous [...]
Sad but true: sometimes a business just doesn’t work out. It might be because the economy is tanked, or because there are cheaper products than yours on the marketplace. It’s better to acknowledge that it’s time to close a business as soon as you realize it than to keep losing money while you try to make it work.
If you’ve been toying with the idea of shuttering your business, but haven’t been sure it’s the right thing to do, this post should help you make that decision. And it’s an important one to make now: putting it off until next year could cost you penalties and fees.
If you’ve never stopped to consider the big-picture future of your business, take a moment to do so now. Maybe you’ve been focusing so much on simply surviving, or on growing your business, that it hasn’t occurred to you to determine how you’ll leave your business, should you decide to down the road.
Someone once told me that a true sign of a successful entrepreneur is the ability to know when it’s time to throw in the towel and move on. One failed business doesn’t define an entrepreneur. And the end of one venture means the start of something new. Closing a business doesn’t just mean selling your assets and calling it a day. You’ve got to go through the right steps to ensure your business is legally closed and you’re primed for what’s next. Otherwise, you’ll still be responsible for filing annual reports, filing state/federal tax returns, and keeping up any business licenses.
Most small businesses are never going to grow as big as Rupert Murdoch’s News Corporation, and fortunately most businesses will never face such grave and shocking accusations of misconduct as Rupert Murdoch’s company now faces. But no matter what size your company, it’s never too early to start thinking about your firm’s succession plans. Succession planning is a way of ensuring that your company has a bright future even after you’re gone. Ready to start a business and build your own business empire? Talk to CorpNet for a free business consultation on how to incorporate a business. CorpNet’s free tools, advice and guidance can help you choose a business structure, form an LLC, set up an S-Corporation or other corporate entity to protect your assets and attain the corporate tax benefits and financial advantages of doing business as a corporation.
Remember: you won’t be around forever, and when the day comes to end your involvement in the business you’ve started, you really need to have peace of mind that your business will go from strength to strength even in your absence.