Small Businesses Closing in Miami
Along one major retail thoroughfare in Miami, small businesses are being pushed out as customers flock to new businesses. Larger retailers have moved into the area, making it difficult for smaller businesses to compete. As these entrepreneurs work to sell off their inventory and make plans to move on, they also face numerous other hurdles before they are able to close their doors for good.
Closing a Business
If you’ve made the difficult decision to close your business, you must first ensure that all business partners and shareholders are on board. If they are, it’s time to begin the process of getting your business ready for closure. Closing your business may seem simple at first, but there are more steps to closing your business than just putting a sign on the door and walking away. Among the things you’ll need to take care of in order to fully close your business are the following:
- Cancelling business permits and licenses
- Closing EIN accounts through the IRS
- Filing Articles of Dissolution
- Notifying any employees and customers
- Paying all financial obligations, including taxes and debts
- Maintain business records, including tax documents, in case of future legal issues
Each of these steps takes time, but attempting to close your business on your own can lengthen the process, since you’ll need to research all of the steps before taking any action. Even if your business is small and closure seems simple, all of these requirements can quickly become overwhelming. What’s more, attempting these steps on your own can result in costly mistakes.
Reasons to Seek Help
The last thing you want to do while closing a business is spend more money but hiring a CPA and a business planning attorney can save you money in the long run. Ensuring that you have all legal documents properly filed and all financial obligations met protects you from costly future legal action.
Potentially expensive mistakes can include leaving your Employer Identification Number open, which can open you to legal issues with the IRS, which may believe you are failing to make tax payments, rather than simply closing shop. Another risk is failing to provide adequate notification to employees prior to closing your business. Florida law dictates a minimum of 60 days’ notice be given to employees prior to closing for businesses with 100 or more employees. However, there are some exceptions to the notification requirements, depending on your unique situation.
Debts can be a complicated issue for business owners working to close their doors. If your debts exceed any assets you can liquidate in the process of closing your business, creditors may still be able to come after your personal assets. However, an attorney can help you to protect your assets in a way that fits your situation.
Contact a Business Succession Planning Attorney Today
Making the decision to close down your business is never easy; don’t let the complicated legalities of closing your business make it even more difficult. Make sure you have an experienced business planning attorney by your side. Contact David Toback, Attorney at Law in Tampa today.