So, you’ve decided to close your company. This can be a difficult time for all business owners and one that you are going to want to deal with as quickly as possible. Closing your company is not that simple and there are some important steps that you will need to follow in order to make it official.
Today, we will be discussing four of these important steps in more detail from dealing with staff down to filing for dissolution.
Deal With Your Staff
One of the worst parts of closing your company can be dealing with your staff. It can be difficult for business owners to let their staff know the news about closure and this can spark feelings of anxiety and worry. You will need to make sure that you pay staff their final wage or make them redundant. You should always seek advice regarding this as redundancy can be a long and complicated process. If you need help with regards to redundancy, then don’t be afraid to look for it online. There are plenty of organisations which can help you through each step of the process. It is best to not go at it alone.
File For Liquidation or Dissolution
Depending on the current financial state of your business, you will need to decide whether you are filing for dissolution or liquidation. If your company cannot pay off what it owes, then you will need to file for liquidation. Dissolution is another route you can take if your company does not have any outstanding debts. This process is usually quicker and more cost-effective.
For more information on how to close your business, we recommend talking to the team at Future Strategy. Not only have they helped many business leaders with the process of closure, but they also have an extensive six-step process which can help to take some of the stresses away that come with closing your business.
Sell Any Company Assets
You may already be familiar with the process of selling your company assets. In fact, some businesses will sell certain assets throughout the year to help cut costs and increase profitability. As you prepare for closure, you will need to sell all remaining assets that you have. It is important that you do your research and understand how you can successfully do this. If you are unsure, then do not hesitate to ask for advice. As your company prepares to close you will have a lot to deal with so there is no shame in asking for some help along the way.
Prepare Final Company Accounts and Tax Returns
If you wish to close your company, then both HMRC and Companies House are two organisations that need to know about it. You should prepare final company accounts and tax returns and send them to both organisations. You should inform them that you wish to close the company in a letter signed by the directors of your business. This is a crucial part of closure and one that you cannot miss. If you are unsure on how to prepare your accounts and tax returns, seek professional advice.