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Steps to take when closing a business

| Dec 1, 2020 | Uncategorized |

There may come a time in a business owner’s life in Huntingdon Valley where they feel it is best to close their business. They may be unable to find a buyer for the business, or they may not wish to sell the business. They may simply want to pursue other business opportunities, they may want to retire or they may be experiencing financial difficulties. The following is an overview from the Small Business Association on how to close a business, shuttering its doors rather than selling it to someone else.

Steps to closing a business

There are several steps business owners should take if they decide to close their business. First, make sure any partners or co-owners agree to the closure. Follow the articles of organization if necessary. If you have an LLC or corporation, file dissolution documents. If you have any permits or licenses, these should be cancelled along with the business name.

Follow federal law and Pennsylvania law on how to pay employees following closing. In addition, you will need to resolve any financial obligations, file final tax returns and cancel any employer identification numbers. Finally, maintain any necessary tax and employment records.

Seek assistance if you are closing a business

Ultimately, closing a business rather than selling it to someone else is a legal endeavor and this post does not contain legal advice. Those in Pennsylvania who want to close their business rather than selling it may want to consult with an attorney. Business law attorneys in Huntingdon Valley understand how to close a business and may be a useful source of information.