Typical Consequences of Business Closures

If my business is dissolved, do I stop owing money right away? And what do I do first?

Many businesses cease operations for various reasons, but not all will absolve your liabilities. This holds even if you close down the business to address a lawsuit.

The closure of your business will not automatically resolve the lawsuit.

Typically, the process of shutting down a business may involve selling assets and properties to address liabilities or fulfill obligations.

The impact of business dissolution can be threefold:

»  Financial: The business may need to settle debts, sell assets, or face financial losses, affecting stakeholders, investors, creditors, and employees.

»  Legal: Legal tasks such as resolving conflicts and adhering to tax rules must be handled correctly to avoid complications.

»  Commercial: The closure can impact relationships with customers and suppliers, potentially damaging trust and future business connections.
Before deciding to dissolve your business, carefully consider the implications. It’s essential to consult a lawyer for guidance tailored to your situation and watch this video to be guided.

Surge Law can assist; follow our Facebook page at https://www.facebook.com/surgelaw or contact us to book an appointment.