Whether you want to do something different or have an overwhelming debt, no matter what the reason of your business closing is, there are adequate steps you must follow before closing the business.
- If your business is sole proprietor then your own decision is enough to close the business, however if you have corporation or partnership then you must take consensus of other corporate officers.
- Give prior notice and information to HM revenue and customs (HMRC) department and take legal permission from them.
- One of the important things you must do is to assure all the Internal Revenue service (IRS) requirements by filing the proper documents and disclosures.
- Make public and formal notices or announcements to let everyone know that you are winding up your business.
- You must cancel all of your licenses, permits and registrations formally. Don’t forget to inform your customers and employees, compensate your all business related debts in time.
- If you are not capable enough for closing proceedings then hire professional consultant. You can also take advice from certified public consultant (CPA) or valuation expert.
- Settle your accounts with suppliers, creditors and customers and obtain clearance or no objection certificate from them.
- Close your business bank accounts and business credit cards properly and make sure that you have cleared all your business bank dues.
- Pay all your pending taxes till date and receive tax clearance notice from required authorities. Store all these business records and keep them for at least next seven years.
- Don’t forget to cancel your lease and all insurance policies, give at least 30 days prior notice to your landlord or property holder.
- Make sure that all company assets are distributed according to company constitution and Companies Act.
Sometimes, in spite of all your hard efforts your business may turn unsuccessful.
So rather than fighting a lost battle and increase your losses, better decision would be to wind it up at the right time. Implementing above tasks will definitely make your business closing process less complicated. It is very tough while making such a decision of closing the business, but you have to do it with strong spirit and great morale.