Badge
Badge
Badge
Badge
Badge
Badge
Badge
Badge
Badge
Badge
Badge

How to Close Your Business the Right Way

Closing a business requires more than just hanging an “out of business” sign in the window and locking the doors. Depending on the circumstances, the closing of your business can cause high levels of stress and anxiety, especially for those unfamiliar with the proper steps to take and the correct forms to file. While both the state of California and the federal government offers resources to assist, the help of an experienced business law attorney could make all the difference.

When closing a business in California, the owners must:

  • File final year current tax returns
  • File proper dissolution, surrender and cancellation forms with the California Secretary of State’s office within 12 months of filing the final tax forms
  • Refrain from conducting business in the state after the final taxable year

This three-step outline, in a very general sense, is the procedure one must undertake for closing a business. The reality of the situation involves the filing of a number of forms with both state and federal authorities, and failing to follow proper procedure could result in unnecessary stress and even litigation. It is important to remember that all tax forms remain open to audit until the expiration of the statute of limitations. In addition to filing final state and federal tax returns, it is important to:

  • File all employment tax forms and attach appropriate statements
  • Issue final wage and withholding information to employees
  • Report capital gains and losses

The list goes on, and unless you have a full grasp of all the forms needed for filing, a single omission could create cause for business litigation. It seems closing one’s business could be just as time-consuming and taxing as opening a business, so the right business and corporate law knowledge and assistance are critical.

What are Your Reasons for Closing the Business?

Of course, the filing of forms could be the easiest part of closing the business if it is being done so by choice. Any one of the following listed reasons is cause for a business closing and would call for the focused assistance of a business law attorney to ensure every detail is managed properly:

  • Filing for bankruptcy
  • Breach of contract or business litigation
  • Loss of a main supplier
  • Shareholder disputes
  • Dispute between partners
  • Death of a principal partner
Contact an Experienced Business Lawyer in San Jose CA

Regardless of the reasons for closing your business, an experienced San Jose corporate law attorney can assist you in properly closing your business. SAC Attorneys LLP provides clients with the in-depth knowledge necessary to handle all matters of business law. For a free consultation, call the SAC Attorneys LLP at (408) 436-0789.

Sources:

Client Reviews
★★★★★
Mr. Cai Is a Diligent Attorney. My sister and I were defendants in a civil litigation case. We hired James Cai and his law firm, SAC Attorneys LLP. Mr. Cai is a diligent attorney and responded to our questions in a timely fashion. He and his staff were very helpful in keeping us informed of the proceedings of the case and in explaining each step. Mr. Cai is also very conscientious of fees and costs, and avoided unnecessary charges. The results of the Summary Adjudication sided with us. The Court Trial resulted in the “Final Statement of Decision” and “Judgment after Court Trial” overwhelmingly siding with us. Cynthia F.
★★★★★
I Am Truly Impressed. After spending a significant amount of time, money and efforts with my previous counsel at a larger law firm without getting meaningful results, I transferred my employment matter to Fortune Law Group LLP. The attorneys there were able to understand the complex situations of my case and put together an aggressive litigation strategy. We were able to file a compelling complaint within a week and forced the opposing party, which was represented by one of the largest law firms in California, to make a substantial settlement offer shortly thereafter. I am truly impressed by the no nonsense and results oriented approach by Fortune Law Group LLP attorneys. A job well done! X. Gao
★★★★★
They Took Time to Understand Our Technology. I am the founder of a bioinformatics start-up in the Silicon Valley and chose Fortune Law Group as our corporate counsels. Their attorneys have great experience with high tech start-ups and were able to offer a highly competitive service plan while not sacrificing a bit of their quality of services. They took time to understand our technology and provided value added services by introducing investors and job candidates to us. We regard our attorneys at Fortune Law Group not only as our legal advisors but also our venture partners. Dr. Pete S.