The New York Law Blog: Winding Up Your New York Business: Essential Steps to Business Closure in New York
Subscribe | LinkedIn Group

Sunday, June 19, 2016

Winding Up Your New York Business: Essential Steps to Business Closure in New York

If you are looking to close your New York business, these are some of the many essential steps you should take:

Vote To Close The Business:  No matter what form your business has taken, you must get all owners' approval to close the business.  In some forms, it is easier to do than others.  For example, if your New York business is a sole proprietorship, you simply make the decision on your own. If it is a New York limited liability company or partnership, you and your partners must agree to dissolve the business based upon the rules set out in your organizing documents and the laws of the State of New York.  Regardless of business form, you should consult an attorney to outline the proper steps to ending your New York business.

Dissolve Your Business With Government:  If your New York business filed documents with any level of government, you need to properly dissolve the organization properly so that you are no longer liable for taxes.  Proper dissolution of your New York business also puts creditors on notice of the ending of your business. This can be as simple as filing a form with whatever level of government you had originally filed.  Again, it is advisable that you consult with an attorney to compile the proper documents.

Cancel All Other Government Entanglements:  If your New York business has any outstanding licenses, permits or other certifications that are active at the time of dissolution, you must cancel those documents with the proper governmental entities.

Remember, before any debts are paid or money is distributed, be sure to pay all taxes owed at all levels of government.

Notify Creditors, Vendors, Employees and Customers:  When you are ready to end your New York business, you must tie up all loose ends.  Notify vendors of last dates of deliveries.  Contact your bank and creditors and arrange for funds to be transferred.  If you have outstanding business loans, be sure to have a plan in place for paying off these debts.   For example, you may need to arrange for an asset sale to cover outstanding debts.

This is not an exhaustive list - it is but a sample of  many other steps that your attorney must assist you with in order to properly end your New York Business.
_____
*Gene Berardelli may be contacted at: GeneBerardelli@ipglegal.com

Gene is a New York street-smart attorney with an extreme passion for success. Gene specializes in litigation, arbitration and general corporate law for New York-based and international clients. He, also, is the host of a popular New York talk radio program.