A step by step guide to closing your business

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closing a business

Starting a business often involves several steps. However, most people don’t understand what steps to take when it comes to closing their businesses. Although employees are always made aware of the closures, customers are usually caught unawares. 

There are legal steps that all businesses need to follow if they want to wind up their operations. But in most cases, you need an experienced business attorney in Chicago to help you with the entire process. 

You should be able to notify all employees in advance to allow enough time to look for other jobs. But the challenge comes if a business or a company wants to close abruptly. 

The employer will have to use the guidelines provided by business law in Chicago to give short notices. 

Besides, any person tied to the business either by revenue, customer, taxes, or any other matter must be contacted and informed about the closing of the business or company. 

It is good to have a Chicago business attorney to prepare all the relevant documents and finalize the closure. 

Beginning of the closure process and checklist 

Closing a business is not as simple as many people tend to believe. There are certain steps that must be followed. There’s a long list of processes that must be properly completed before a business can shut its operations forever. 

You should work closely with Illinois business attorneys so that they can handle all the legal issues. On the other hand, your accountant should be able to take care of income, revenue, and all other outgoing transactions. 

Voting, dissolution, and notifying stakeholders 

When articles of incorporation or partnership agreements are put on paper, it is important that the voting process is done before the person exists in the business or company. If it is a full dissolution, then a two-thirds vote is normally required. 

This is meant to ensure that all stakeholders understand that no more revenue will be coming and no debts will be accrued again. 

Both employees and customers should also be made aware that the nosiness has ceased to operate and that no more products or services will be produced or offered. 

Government agencies, settling of accounts and closing out 

It is a must that all debts are paid out before the business closes. This also includes any incomes owed to employees or anybody who offered their services to the company and wasn’t paid. 

When it comes to contracts that are supposed to end at a date after the company has closed, the issue has to be addressed and all the parties informed. You can consult with business lawyers Chicago and see how to go about this. 

Additionally, any government agencies or institutions that might have issued licenses to the business must also be informed about the closure. 

Another important step in closing a business is the closing of bank accounts and the distribution of assets. In the case of real estate, the property must be evaluated and personal property should also be appraised. 

The good thing is that details of how assets should be distributed are often contained in a business agreement. But if that’s not the case, then you can check what is stipulated in Chicago business law. 

Some bank accounts require redistribution of assets in order to clear debts. Monetary assets may also be used to pay employees before they leave the company for good. In some cases, shareholders will be paid dividends. 

Why you need a business lawyer to help you in the closure process 

As mentioned earlier, closing a business is not an easy job. You need the services of a qualified and experienced business lawyer from Anthony J. Madonia & Associates to assist you throughout the process.