5 Often Missed Steps to Close Your Business
Most business owners look forward to the end of the administrative part of running a business and promptly close everything above. We’d like to suggest a more measured approach to minimize hassles and expenses, and provide some inexpensive protection. Here are 5 often missed steps to close your business and advice if your business is closing and your creditors, vendors, employees and taxing authorities are all getting paid.
5 Often Missed Steps to Close Your Business
1. Final Tax Return with the IRS
Consider whether the business is done receiving revenue. Obviously review accounts receivable, but also consider refunds and rebates on closed accounts. Many owners are surprised when large checks arrive after closing some account or other. If you believe all funds have been received, it is fine to file a final tax return for the business. If unforeseen revenue dribbles in after you’ve filed your final return, the income can be accounted for on your personal tax return without much trouble.
A consultation with a knowledgeable attorney is comparatively inexpensive to the problems and costs that can arise as a result of winding down a business without thought or planning. We strongly recommend bringing in an attorney to understand the potential pitfalls when closing a business.
This article does not cover situations that require more legal process and attorney involvement, all of which will be the subject of future articles. They are filing a bankruptcy, placing the business into receivership, making strategic partial distributions or pro-rata partial distributions to creditors and settling obligations with creditors for less than the full amount owed.
Contact the bankruptcy attorneys at Wenokur Riordan PLLC today at (206) 724-0846 to discuss your situation.