Business owners never want to think about the day when they are no longer in business. Unfortunately, the experience of closing a business is one that many Michigan business owners will have to go through. There are many reasons to close a business, including:
- Financial challenges (e.g., low profits, excessive debt, lack of resources)
- Poor economic conditions
- Competition in the marketplace
- Personal reasons (e.g., physical/mental health issues, desire to spend time with family, desire to pursue other opportunities)
- Conflict between business partners
What should I do if I want to close my business?
Making the decision to close your business may have been a difficult one, but now that you have made it, it is important that you take all the necessary steps to close your business the right way. The process for closing your business will depend on the type of business structure you have and is generally more involved for LLCs and corporations. For example, if you are dissolving an LLC in Michigan, you should:
- Hold a vote with LLC members regarding dissolution and follow dissolution process cited in the LLC’s operating agreement.
- Pay off taxes/fines, pay/notify creditors, distribute assets, and take other actions to “wind up” the company.
- Submit a tax clearance request to the Michigan Department of Treasury
- File a Certificate of Dissolution
If you are dissolving your LLC or other business, an attorney specializing in business law can help. Your attorney can help you file the necessary paperwork and handle all other matters related to closing your business.
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