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Business Tips

3 Vital Steps To Close Your Business

Starting and running a company takes a lot of time, effort, and work, but this doesn’t always work out. For many entrepreneurs, they’ll end up coming to the conclusion they need to shut up shop. You could end up needing to close your business, despite the fact you don’t want to.

Despite how much you wouldn’t like it, the warning signs could be there, and there’s no reason to keep going with it. You’ll have to take a few specific steps when you’re doing this, and it’s not as simple as just walking away from it.

Three of these are vital to the process, and they’re worth focusing on.

Close Your Business: 3 Vital Steps

1. Let Staff Know Early

Looking after your staff as much as possible is vital, even if you’re closing your business. When you’re about to close your business, you should let them know as early as possible. It gives them the chance to start looking for work before the actual closure.

While this isn’t legally mandatory, it’s the more ethical thing to do. It helps them make sure they can find a new job and still get a paycheck to live on once their business shuts up shop. Tell them as soon as you’ve made your decision.

2. Cancel Permits & Licences

When you’re starting your company, you’ll naturally need to register it and get a few licenses and permits. As you’re shutting up shop, you’ll need to cancel these as early as you can. If you don’t, you could end up in a position where you’re legally still running a company, even though you’re not.

The law would still state your company exists, despite the fact you’re not running it anymore. All you’ll really need to do with this is file the right paperwork and possibly pay a fee. Once you do, it’s a matter of waiting for specific agencies to get back to you saying your permits and licenses are canceled.

3. File For Liquidation

Depending on the state of your finances, you might need to file for liquidation when you’re closing your business. There are various types of this you can go through, such as a member’s voluntary liquidation. Pick which one’s right for you and your business before proceeding.

You could need to go through specific steps depending on which liquidation. In most cases, that simply involves filing the right paperwork and getting everything done in a timely manner. It shouldn’t be too complicated once you know what you’re doing.

Close Your Business: Wrapping Up

Even if you don’t want to close your business, you could end up in a position where you have to. That doesn’t just mean just walking away from your company, however. You’ll have to take a few particular steps to make sure it’s legally closed down.

Some of these are more important than others. Letting staff know early, filing for liquidation, and canceling any permits and licenses you have are all parts of this. They’ll make sure you close up everything legally and ethically.

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