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 Nolo's small business products.
Overview
Overview
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Closing Your Business: What You Need to Do
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
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Checklist for Closing Your Business: 20 Things You Need to Do
Make sure you still follow orderly procedures even if you are forced to abruptly close your business due to the COVID-19 pandemic.
Practical Steps You'll Need to Take
Practical Steps You'll Need to Take
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How to Break a Commercial Lease When You Go Out of Business
Negotiate with your landlord to terminate your lease early.
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Notify Creditors of a Business Closure to Limit Your Liability
For corporations and LLCs, notifying creditors of your business's closure can limit the time in which they have to make a claim.
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Distribute Any Remaining Assets to Owners When You Close Your Business
There are rules you must follow before taking the assets out of an insolvent business.
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Going Out of Business: Liquidate Assets Yourself or File for Bankruptcy?
Liquidating assets and negoiating debt settlements yourself is more private and less expensive than bankruptcy.
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Close Down Your Business Yourself: The Out-of-Court Work Out
In a business work out, you liquidate assets and negotiate debt settlements yourself.
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How to Liquidate a Closing Business's Assets
Here's how to sell your business's assets for the highest amount.
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