When a Nashville small business wants to close its doors, odds are the owner will not be able to simply walk away. Business law requires certain procedures in order to legally close and dissolve a business. These steps protect everyone involved, including the business owner.
Limited liability companies, corporations and partnerships operating with a written agreement should first look to their organizational documents for dissolving the business. In the absence of those documents, you may need to look to Tennessee law for the dissolution process. Articles of Dissolution may also need to be filed with the state. Sole proprietorships will not have these requirements, but may need to take other steps.
In order to avoid future liability from someone else using business permits or licenses, canceling them needs to be a priority, if the business has any. The IRS, Tennessee and any local taxing authorities require notification, as well as the filing of any final tax forms and payment of any taxes owed. The business must also notify any creditors and handle the disposition of any outstanding balances. The company should also collect any balances owed to it as well. The company’s assets can be sold and the proceeds distributed to those with a stake in the business.
The above represents the broad strokes of dissolving a company. Each one is different and may require additional steps. Nashville business owners who want to dissolve their companies need to make sure they follow all applicable business law requirements in order to ensure that nothing can come back to haunt them in the future. This may require enlisting legal assistance to help ensure everything is done properly.