Quick Look at the Process of Closing a Business Voluntarily

A business broker San Diego understands that the best time to close a business is when it is doing well. However, there are situations that might cause you to close down involuntarily. If you are closing voluntarily, we shall be taking a look at the information you need to have in this post.

Situations
There are two situations that allow you to close your business voluntarily:

  • The need to no longer run it. This happens when you don’t want to sell to a new owner and there is no one to succeed you.
  • The business has been failing and it is hard for you to sell it. In this case, a sale is considered to help pay off debts and keep whatever is left by selling the business assets. Doing this prior to insolvency or bankruptcy will help you exit without the risk of long-lasting impacts. Business brokers San Diegowill help you plot the best way forward.

Once you have reached the decision to close down, it is imperative that you draft and exit strategy. Your business broker, accountant or business adviser will help with this plan. Your business structure will dictate the time it takes to close down. Your special circumstances and reasons will also have a part to play. Big companies with sophisticated operations normally take years whereas sole trader operating from home close within weeks.

Emotional costs
The process of selling the business will not be without emotions. It is common to feel like you are letting your community, employees and customers down by closing the business. The best thing you can do is to delegate the sale to a business broker San Diego and try to remain positive throughout the sale. Your business broker can help you get confidential emotional as well as crisis support.

Legal requirements
You don’t want to take shortcuts when selling your business. You must familiarize yourself with all the legal requirements before you get started. Some of the things you will have to do include the following:

  • Cancelling the business name. This should be done within 28 days of closing the business.
  • Notify staffs about terminating their employment. Permanent employees will be owed entitlements which might include accrued annual leave.
  • Finalize tax issues
  • Cancel workers’ compensation insurance plans
  • Dissolve partnership

A lot goes into the closing of a business. The best thing you can do is to find and work with the most experienced and reliable business broker San Diego. Don’t sell or close on your own. There is a lot of work involved and the business broker will alleviate the burden.

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