Starting a business is the greatest risk that an entrepreneur can take. Not all business startups are guaranteed to be successful. So if your business is not doing so well then you should consider selling to a willing buyer or closing it completely.
Key Elements of Business Closing Analysis Sheet :
Before creating a Business Closing Analysis Sheet, you will first need to make every crucial decision whether you are really ready quit your business or you are going to sell or close the business completely. And if the business is a partnership, limited liability Company, or a corporation, then you, other co owners and other stake holders will seat together and make a decision to dissolve the company. Remember it is important to document the final decision with a written agreement.
Seek For Expert Advice
A business closure is a very delicate multiple step process that will require a clear and sober mind to make the decision. And before you make that crucial decision it is highly recommended that you seek professional help from the experts like lawyers, accountants, business brokers, tax experts, bankers or even business auctioneers. Through Business Closing Analysis Sheet, you can get all the relevant information.
Organize Dissolution Documents
The Business Closing Analysis Sheet should include the dissolution documents. If the business is a partnership, corporate or a limited liability company then you should dissolve it legally so that you will stop been liable for taxes and return filings. Even if it is a sole proprietorship business, it is equally important to notify the government and creditors of the business closure.
Terminate or Cancel All the Registration Papers
The cancellation of registration papers, permits, license and business name will protect you reputation in the society and also protect your finances. If your business is registered under trade name rather than your name then you can cancel the business name registration with your local government authorities.
Final Wage Payments and Business Debts
Notify your employees, lenders and creditors of you plan to dissolve or sell the business in advance to avoid inconveniencing them in any way, and then settle their remaining due salaries and debts. You should also contact other business associates to who you owe payments or who owe you payment. When you are creating a Business Closing Analysis Sheet, it is wise idea that you discuss it with your lawyer, accountant and insurer to make sure everything is accounted for.
Make the Final Federal Tax Deposits
At this stage of the Business Closing Analysis Sheet we will discuss the need of being able to comply with federal taxes law. When you are filling your income tax returns of the year in which you plan to close or sell your business then you should make sure you check the box that indicates the final return. This will notify the government tax authorities that the business is closing and it will not be generating any taxable income and that was the last and final tax return. Finally you should also close your business bank accounts and cancel all your business credit cards. Be sure to maintain all the documented records, particularly tax and employment records, for legal use. They are very important even after your business has closed.
Business Closing Analysis Sheet Template 01