How Do I Go Out Of Business?

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 the 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.

Almost uniformly, the choices for a business owner who is going out of business are:

• Filing a final tax return for the business with the IRS

• Closing tax accounts: federal payroll, state payroll, sales, personal property (if applicable), all other states, county, and municipal tax accounts

• Renewing business licenses (state, county, city — depending on business location)

• Closing bank accounts

• Renewing the LLC or the corporation with the Secretary of State

Most 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’s our advice if your business is closing and your creditors, vendors, employees, and taxing authorities are all getting paid. Read more.

If you’re considering going out of business, speak with an experienced bankruptcy attorney about all your options.