What to do when you want to close your business

One of the hardest and simplest, at the same time, things you may find yourself forced to do when owning your own business is to close it. You worked hard to make it survive and when it finally dies you may want to save it even though there’s nothing much you can do anymore. A business may stop being profitable from various reasons, but if you tried everything hat is in your power to salvage it and it still didn’t survive, it’s time to say goodbye. It’s hard and heartbreaking (especially if it was your first one and if it was your only source of income) because it’s your baby that you worked to develop, but you can always start something new again and again from the beginning. Usually you don’t close without a serious reason and whatever that might be, there are some things you have to do before getting out from it for good. 

File for dissolution

It is a formality, but it must be done for legal and financial reasons (otherwise you will have to keep paying taxes for something that produces nothing). So, this is the first step in this unpleasant process. Depending on your business type, you may have to do different things, but at the end of the day, they all have the same result. If you are not alone in business and you have partners, all of you should sign a resolution for dissolution in order to prove that you all agree this is the end. After that you have to complete a notification in which you have to state the entry of the business, the reason you want to close and, again, the signatures of all partners.

Empty the wording place

After you decide to finish your business, you have to somehow move all the stuff you gathered over the years in the office, like desks, chairs, papers and documents, devices and so on. You might need to use them again in the future if you want to start something else. You can keep them at home if you have enough space and not too many things or you should find other solutions, like for example search for storage units Bedford. Otherwise, if you want to start a business right away, there is no need for that because you can use the same office or you can move them to another one. In the event that you got tired of owning your own company, you might as well sell a part or all of them.

Pay your debts

Ending your business activity doesn’t mean that you are exempted of expenses. You still have to pay off your last taxes, bills and the final salaries of your employees. Also, if you have some other financial obligations like credits or loans, you should see about them and ask your providers, because you can get some deductions if you do not afford to pay them anymore (but it depends on many issues). Finally, after you are all done, close the accounts and cancel the ID numbers of your employees.