How to Go Out Of Business: Advice from a Business and Bankruptcy Lawyer
Our law firm is in the unique position of advising clients on both upside transactions (mergers & acquisitions, leasing, development, corporate) and insolvency (workout/restructure, bankruptcy, receivership). Many lawyers who only do mergers and acquisitions work simply do not have the nuts and bolts perspective we have when it comes to advising a client on what happens after a business is closed. Whether a client has sold a business for millions of dollars in profit or gone under leaving the business’s obligations unpaid, Wenokur Riordan PLLC has advice to help the business owner stay out of trouble and save money.
Most businesses that go out of business do not file a bankruptcy or formally dissolve their business. Many businesses just close their doors, pay their last payroll, sell or give away their equipment, and pay their creditors and vendors. The owner then tells their accountant the business is closed, and the accountant closes the books. The owner is then confronted with a bunch of administrative choices that no one really considers or discusses.
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.
