Your business cannot just close up shop and cease operating. There are formal steps that you need to take to bring your business entity to a close.
First, you must seek approval to dissolve the business from its owners. If you are running an LLC, you would need sign-off from the members. If there are shareholders, their ownership interest is affected, and you would need their approval.
Then, you must notify the Secretary of State that you will no longer be in business by filing articles of dissolution. There may be outstanding tax issues that you would need to wrap up with the federal and state governments. You would need to file your final business tax return to pay taxes or obtain a refund. At the same time, you must also settle outstanding business debts with your creditors.
As part of shutting down your business, you must wind down your operations. Included in this is paying your employees what they are due and notifying your stakeholders that your business will be closing. You may need to negotiate a termination of certain contracts, such as leases.
You would also need to liquidate or sell business assets. Some of the money may go towards paying back creditors. The rest may be distributed to the owners of the business. You may have a fiduciary obligation to handle the sale properly and get the best possible price.
Hiring an experienced attorney to help with the dissolution process could minimize the chance that you can face litigation.
Contact a Miami Florida Business Attorney Today
Attorney Daniel D. Diaz can help you handle the difficult process of dissolving your business, working with you to ensure an orderly process. To learn more about how we can help, message us online or call us today at 786.256.3299.
