Choosing to close down your Texas business can be a difficult decision. In some cases, you may be able to sell your company or your premises to increase the financial resources available for outstanding bills and other expenses. The Small Business Administration website offers guidance for owners in closing a business correctly. Working with a professional Sugar Land business law firm can help you ensure that all details of this process are handled correctly. Here are five steps to follow when closing down your business in the state of Texas.
Itemize Your Assets and Obligations
Your first move should be to determine the exact dollar amounts of your outstanding debts and bills and the value of your assets. This can provide you with added information when moving forward with your closing plans. Working with a firm that has extensive experience in Sugar Land real estate law can help you identify the best ways to approach the sale or transfer of your property. By assessing your financial situation accurately, you can proceed more confidently in shutting down your business enterprise.
Prepare Items for Sale
If you have business equipment or other major items of value associated with your company, preparing these assets for sale can sometimes help you to attract higher offers from prospective buyers. This includes performing necessary maintenance on heavy equipment, ensuring that vehicle maintenance checklists are up to date and scheduling HVAC and other repairs to your real estate properties. A small investment now can add up to improved values and increased financial resources for you at the time of sale. If a public auction or sale is planned, determining where the event will be held and making appropriate arrangements at least a month in advance can ensure the largest possible audience for your going-out-of-business sale.
Discuss Matters with Your Partners
If your business was operated as a sole proprietorship, you need not consult anyone else before shutting it down permanently. For companies founded under partnerships or with stockholders, however, a majority agreement must be reached before disbanding the business and closing your doors. Ensuring that all parties are on board with the decision to close is essential for most businesses in the state of Texas.
Complete the Paperwork
The process for dissolving your business entity in Texas is relatively simple. First, you must conclude your business affairs in an acceptable fashion, which usually includes some or all of the following actions:
- Paying off any outstanding obligations or debts
- Itemizing all assets and arranging for their sale or disposition
- Filing and paying all income tax liabilities and obtaining a Certificate of Account Status from the Texas Comptroller’s website
You must then submit two signed copies of the required certificate of termination to the office of the Texas Secretary of State. Fees for terminating a Texas business range from $5 for nonprofit organizations to $40 for some other business types.
Enlist the Help of Legal Professionals
Retaining the services of a qualified Sugar Land business planning firm can help you stay on the right side of the law during the complex process of closing down your small business operation. These dedicated legal professionals can provide you with the forms and the guidance needed to achieve your goals in dissolving your company and freeing yourself from ongoing obligations associated with your small business enterprise. Professional Sugar Land attorneys can help you determine the best exit strategies and techniques and can help you retain greater financial control throughout the closing process.
Working with a company with Sugar Land business law experience can help you navigate the complicated process of shutting down your business entity or transferring it to another owner. The legal experience at The Law Office of Henry Jakob can provide you with accurate guidance for all your business law, real estate and civil litigation needs. Give us a call at 713.640.5700 to set up an appointment with one of our knowledgeable attorneys.