What Does it Require to “Wind Up” a Business?

For whatever reason, you may need to shut down your business. This is not a process that simply happens on its own. Before your business can come to a legal end, there are a number of steps that you must take.

Some of the steps that you must go through are procedural. For example, you must file notification forms with government agencies informing them that you will no longer be in business. This includes:

• The Florida Secretary of State’s office
• The Internal Revenue Service
• Any government agencies that have given your business a permit
• You may also need to notify come creditors under state law

Closing the Books on the Business

Then, you must finalize your business books. This involves closing down your accounts and collecting all of the debts that you are owed. You may choose to liquidate and sell your business assets. Most important, you must ensure that your creditors are paid before you can fully wind down your business.

Finally, you will distribute assets and money to the shareholders of the business in accordance with their ownership shares. The business agreement will likely contain clauses that govern winding down your company. It is important that you follow these closely, or else you could find yourself facing a shareholder lawsuit. Make sure that you get legal advice about all of the steps that you need to take because missing one of them could cost you money or subject you to legal risk.

Call a Boca Raton Business Attorney

The lawyers at Rubino Findley PLLC can give the peace of mind that comes from knowing that you have experienced attorneys handling your crucial business matters. Call us today at 561.220.0741 or contact us online to discuss your business issue with a Boca Raton business lawyer.