Options When Ceasing Business

Running your business is hard. It’s challenging and stressful and often feels like it will never end. You’ll spend hours upon hours working to keep your business running. And then, when you finally get everything back on track, something else comes up, and you have to take care of that again.

Even if you love everything about your business, there will come a time when you can’t run it any longer. If you can’t keep running your business, you need to find a solution. Maybe you’re ill and need time off to recover or have suffered an injury rendering you unable to work. You need to look at making a social security reconsideration claim. Maybe there’s a new complication that makes running your business impossible. Maybe your personal life is changing, and you need to focus on that. 

Options to empower business transition

• Succession Planning

• Mergers & Acquisition

• Start New Venture 

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This post looks at what happens when you can no longer run your business and how to approach it.

Decide When to End Your Business 

It might seem like a simple question, but it’s not. There are many factors to consider before you decide to end your business. Are you sick? Will the illness affect your ability to run the business? Are you burnt out and need time off to recover? Is there a complication that makes running the business impossible? 

The last thing you want to do is unexpectedly close up shop, leaving clients and employees stranded in the dark. You need to look at your options and your situation carefully and get help to find the right strategy to shut down operations in the best possible way effectively.

Can You Find A New Owner?

If you’ve been running your business for a long time, you might not want to give it up. That’s perfectly okay. You can find someone to take over or buy your business. If you’re going to find a new owner, start by creating an ad on sites like BizBuySell.com and ValuePenguin.com so that the world knows your business is available for purchase.

You should also create a plan of the company’s day-to-day operations with information like what hours you work, what tasks are necessary to run the company, and any other relevant information like how much revenue your company makes annually or how many employees work.

Then you can list this plan on websites like BizBuySell.com or ValuePenguin.com so interested parties know what they’ll be getting if they buy your company from you.

Tax Implications of Ending Your Business 

One of the first things to consider when ending your business is what will happen to your taxes. When you terminate a company, you’ll need to determine if the business is closing or phasing out. If it’s closing, it’ll be considered a full tax year, and you may need to pay quarterly estimated taxes. On the other hand, if it’s phasing out, you won’t be required to pay taxes for that last tax year.

Resolve Financial Obligations

If you’re ending your business, you want to do it in a way that leaves you with minimal financial obligations. Once you no longer have a company, your income will decrease or stop altogether. 

You may need to look at raising funds to meet outstanding credit obligations, or you need to contact those you owe money to discuss your options. But being able to resolve financial implications will help you out in the long run once you have closed the business. Speak to your accountant if you use one, and make sure you are updated with your financial obligations.

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