Closing Your Business in Chicago? What You Should Know

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closing your business

Are you looking to close your business in Chicago? Well, this is not so easy a decision; however, by this point, you already have good reasons, be it retirement, starting a new business venture, financial problems, or only moving to another state.

But the real question is, do you wake up and close the business, or is there a process to follow?

It would be best if you had a plan that will protect your assets, credit, and reputation. Most importantly, all legal issues have to be taken care of before closure; otherwise, you risk experiencing long term ramifications. So, where do you start?

Chicago Illinois business lawyers from Anthony J. Madonia & Associates got your back. Here is what you need to do.

Notify your creditors 

Let your creditors know you are closing the business. By doing so, you give them time to submit their claims and to avoid the risk of scrupulous creditors, you may have to publish a notice of closure.

Also, in a scenario where the creditor agrees to receive an amount less than what he or she is owed, ensure you get a letter indicating that the debt is fully paid.

Vote

When you can quickly close all the operations, if you are dissolving a corporation, LLC, or are in a partnership, a formal vote is required, with the majority agreeing to dissolve. Otherwise, the government will still require you to pay taxes and file annual returns.

Pay outstanding taxes

Be sure to notify the IRS that you are closing your business and pay all the outstanding taxes. If you have employees, ensure the final payroll taxes are paid to avoid any legal charges in the future.

Complete final paperwork

With your final paperwork, feel free to contact Chicago Illinois business lawyers from Anthony J. Madonia & Associates. They will help you cancel any business permits or licenses, terminate any business liabilities, file IRS Form 966 (Corporate Liquidation), and Form 8594 (Asset Acquisition Statement), among other things.

Call or email Anthony J. Madonia & Associates today to learn more about the dissolution of a business.