Properly Getting Out of Your Small Business

The most important part of getting out of your small business is, of course, closing it. You must first agree with others who may hold stock or have otherwise invested in your small business that the business should be closed. If your business partners disagree, you may be able to get out of the small business without going through all the trouble associated with closing it or selling it and would be best advised to explore those options. However, if everyone is in consensus that the small business should be closed, you must follow a few steps to ensure that all necessary bases of closing the business are covered.
 
Your first step is to notify the government agencies that regulate your small business that you will be dissolving the business. Local, state and federal governments may need to be notified, so be sure you know who has to know your business is closing. Next, your permits, licenses, and other business paperwork must be taken care of, canceled, or suspended as per legal regulation. After that, you must ensure all debts and taxes are paid and current. If you are unable to pay your debts, you must meet with your lending institution to work that out. Lastly, notify all creditors, employees and customers. You do not want your business to simply disappear off the face of the earth. Your employees need to know that they'll have to seek employment elsewhere and your customers will need to know that they have to find another place to do business.
 
One of the most important parts of closing your small business is dealing with the taxation aspects of it. There are several things you must do to take care of your taxes and if you miss one of these things, the IRS may be after you long after you thought your business was closed. A detailed list of tax-related items and issues that you must take care of can be found at the IRS's website. For help with questions about exit strategies for your small business, please contact us.