Dissolving a business doesn't always mean getting out of the market or simply closing down. Sometimes, it's just as important to ensure that your potential business partners are given the opportunity to gain a complete and accurate picture of what you're all about.
A business lawyer like Andrew Mongelluzzi can be a great companion during the process of selling your business or undergoing a downsizing. He and his team will take care of all legal things and will make sure you get the right price for your business.
Whether you'll be handing over your company to an employee or selling it, these five important tasks will help ensure that everything is taken care of and nothing is left on the table.
1. Filing appropriate paperwork
Dissolving your business involves filing a lawsuit, which will be accompanied by paperwork, such as complaint papers. The papers contain information about the nature of dissolving the business and if you are selling the business, what it must include. This also includes ownership rights of all assets, zoning records, and any other pertinent details related to your business.
2. Alert your creditors
Once you've decided to dissolve the business, inform your creditors and any other parties who might have an interest in your company. You are required to let these parties know that the business has been dissolved and where they can expect to receive payment. Make sure they know why the business is being dissolved.
3. Pay your debts
Dissolving a business incurs all the debts of your business. This also includes warrant fees, taxes, and fees related to dissolving your business. If you do not pay these debts, you'll be responsible for any further charges that are incurred on these debts. You'll have to pay for them out of pocket even if it means using your personal finances.
4. Coordinate with IRS
You should coordinate with the IRS, which will be one of the first things you have to do, to tell them that you are dissolving your business. They will require a certification stating that the business has been dissolved and its activities have legally ended.
5. Managing your business and banking operations
Once you've undertaken all the necessary steps to dissolve your business, you should make sure that nothing is left undone. Your company's bank accounts, business website, and other activities should be managed as you would manage your personal finances.
