Many business owners that experience trouble paying business bills or can’t appear to earn enough income to remain afloat have no idea of the option of closing a small business without bankruptcy. If you’re a business owner drowning in company debts, the viability of your business might be threatened. Sometimes, dissolving a small business that is becoming too financially cumbersome to operate is the best answer to avoid further debt and anxiety.
If you select closing a small business and avoiding bankruptcy is the best option for you, the first step you must take is to dissolve your business in the constant state where it was first integrated. This step pertains to businesses that have a corporation or limited liability company structure, and in some cases, for general and limited partnerships.
If you have a collaboration that is registered with the condition, you must dissolve the entity with the state when procedures cease. You can buy dissolution information from the Secretary of State where you transact business or your Public Regulatory Commission. Generally, you must complete an electric or paper dissolution record and pay a processing fee.
If you are a sole-proprietor, you do not have to dissolve your business with the state. When you close your business, you must file final returns with the IRS; the IRS offers a great checklist to shut a continuing business. Corporations, partnerships, incorporated LLCs, and multi-member LLCs must file final income tax returns with the IRS, usually within half a year after the business closure. Sole proprietors and unincorporated single member LLCs need not file final tax returns.
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