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.  In most cases you shall require a New York Bankruptcy lawyers to assist in the windup process:

Vote to Close the New York Business
No matter what form your NY 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.

Dissolve your Business with the New York Government
If your New York business filed documents with any level of government, you need to properly dissolve the organization 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 a form with.  Again, it is advisable that you consult with an attorney to compile the proper documents.

Cancel all other New York 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 the 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 the many steps that your NY bankruptcy attorney should assist you with in, in order to properly windup your New York Business.  If you are planning to conduct a new business take a look at my article on New York Due Diligence.

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