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What people need to do as they close their business?

On Behalf of | May 27, 2021 | Business Law

There are many different businesses in New York. These businesses provide a wide variety of products and services. They also vary in size. Some may be run by one person or a small group of people. Others are multi-national corporations with thousands of employees. Small companies are run much different than large corporations for obvious reasons. What makes small business unique is that the business is often times associated directly with the people that run the business as opposed to the name of the business.

The owners income is directly related to the success of the business and. the owners are also the basis for the success of the business. However, like anybody at some point in time the owners may like to retire or move onto another type of business or employment. When they make this decision it is not as simple as it is for the employee of a bigger company to retire. Owners of small businesses need to dissolve the business and close it.

Steps to closing a business

In order to do this properly there are steps that the owners should take.

  1. If the company is owned by multiple people, they need to follow the bylaws of the company on how to close it.
  2. They will also need to file dissolution documents with the secretary of state to ensure that they are not required to continue to pay any fees.
  3. Cancel any licenses, permits or name registrations they may have for the company.
  4. Resolve any outstanding debts or financial obligations.
  5. Maintain relevant records of the business that involve the operations of the company.

Many businesses open and close in New York each year. When business owners decide to close the business, they need to do it properly to ensure they are no longer liable for any aspects of the business. Experienced attorneys understand the steps that need to be taken and may be able to guide one through the process.