Closure – Voluntary Retirement

Business Closure

In leaving a business you may decide to simply cease trading. Your decision may be based upon you not being able or willing to sell something that has become part of your alter ego. Whatever the reasons may be inclosing down the considerations you need to take account of are:

Do you have sufficient money on hand or from the sale of assets to pay all of the debts of the business?

How much money will you have to pay the employees on them being made redundant?

What expenses will you incur in ceasing to use a business name or trade mark?

You must ensure that you have sufficient money to pay all creditors otherwise you must cease trading through bankruptcy or insolvency?

What expenses will you incur in deregistering a company if you operated your business through a corporation?

Succession Planning Call to ActionIs it the most appropriate course of action to simply cease trading and if so at what time? Should it be during a financial year or will there be tax benefits if it is just after the commencement of a new financial year?

Will you receive a capital loss by simply ceasing to operate the business?

By ceasing to trade will you have the cash to be able to pay all of the costs associated with the cessation of the business or will you need to ascdertain the costs of ceasing to trade and then after saving the money needed close the doors? If you will need cash when will you be in a position to have the cash to close the doors?