SBA Guide to Closing or Selling Your Business
The Small Business Administration has a guide on their website to create a plan to transfer ownership, sell, or close your business. They suggest that you get qualified advice and know what to do to tie up loose ends.
Closing your business can be a difficult choice to make. The Small Business Administration’s counseling tool can connect you with local guidance in planning your exit strategy. It’s also helpful to seek advice from your lawyer and a business evaluation expert, along with other business professionals including accountants, bankers, and the IRS.
Follow these steps to closing your business.
- Decide to close. Sole proprietors can decide on their own, but any type of partnership requires the co-owners to agree. Follow your articles of organization and document with a written agreement.
- File dissolution documents. Failure to legally dissolve an LLC or corporation with any state you’re registered in will expose you to continued taxes and filing requirements.
- Cancel registrations, permits, licenses, and business names. Protect your finances and reputation by canceling any of these that you no longer need, including your trade name. —SBA