Going Out of Business
If you can’t make required tax payments or are slipping behind on your house or car payments, chances are you are past the point where trimming expenses or adopting a clever marketing campaign will salvage your business. If you conclude that there’s little or no chance of getting back in the black anytime soon, it may be time to cease operations, pay off as many debts as possible, and close down in an orderly fashion, before your creditors force you to do it. But closing down a business can take more work than setting up a business--if it's done properly--and you'll want to do it properly to end all personal liability for your business.
Nolo has books, forms, and online applications that can help small business owners with all aspects of their business, including closing it down. See the Small Business Products page for a complete list of our small business products.
If you've run up big business debts and are worried you'll never being able to repay them, it may be time to sell the business's assets, pay off its debts as best you can, and move on
Make sure you still follow orderly procedures even if you are forced to abruptly close your business due to the COVID-19 pandemic.
Negotiate with your landlord to terminate your lease early.
For corporations and LLCs, notifying creditors of your business's closure can limit the time in which they have to make a claim.
There are rules you must follow before taking the assets out of an insolvent business.
In a business work out, you liquidate assets and negotiate debt settlements yourself.
Here's how to sell your business's assets for the highest amount.
Empower Yourself: DIY Products by Nolo
Sidestep the lawyers with do-it-yourself books, documents, and software.
Online Form
LLC Operating Agreement
Online Form
Nolo's Online LLC
Nolo offers hundreds of consumer-friendly, do-it-yourself legal products for all types of legal situations. Browse our full product list.
More Legal Issues
Click below to view more legal issues. Our extensive collection of legal topics ranges across different areas of practice.
Corporations Car Accidents Criminal Law Debt Management Disability Law Divorce & Family Law
Learn About Our Team
Our editors have over 100 years of combined experience practicing law. These professionals have worked in a wide range of legal areas, from estate planning to criminal law to business formation and beyond. They’re experts at explaining complicated legal issues in easy-to-understand terms.
Learn more about the team that manages Nolo’s articles, books, and DIY tools.
Need a Lawyer? We Can Help
Find an experienced, local attorney in three easy steps. Our process is designed for ease and simplicity.
Describe Your Case
Briefly tell us about your case, and provide your contact information.
Get Connected
We find and instantly list attorneys that can best handle your case.
Hire an Attorney
Choose the attorneys you would like to work with.
Nolo Legal Dictionary
At Nolo, we prioritize quality and transparency because we know how important reliable legal information is to our readers. Our information is meticulously researched, regularly updated, and written in plain English by our experienced writers and editors. Learn more about our editorial standards.
Are You an Attorney?
Grow your firm with Martindale-Nolo, the largest legal network, and learn more about our attorney lead-generation and marketing services.
Integrity and Expertise You Can Rely On
At Nolo, we prioritize quality and transparency because we know how important reliable legal information is to our readers. Our information is meticulously researched, regularly updated, and written in plain English by our experienced writers and editors. Learn more about our editorial standards.
Copyright ©2025 MH Sub I, LLC dba Nolo ® Self-help services may not be permitted in all states. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site. The attorney listings on this site are paid attorney advertising. In some states, the information on this website may be considered a lawyer referral service. Please reference the Terms of Use and the Supplemental Terms for specific information related to your state. Your use of this website constitutes acceptance of the Terms of Use, Supplemental Terms, Privacy Policy, Cookie Policy, and Consumer Health Data Notice.
Your Privacy Choices