There are many reasons for closing a small business. It may no longer be profitable to continue, you may have found an enticing job offer, or you may just want to cut your losses and avoid incurring additional debt. Whatever your reasons may be for taking down the "open" sign, by the time you are sure you want to call it quits, you are likely looking for a quick and painless exit strategy.
The good news is that you are not alone. You just have search online to find dozens of tips, checklists, and notes of advice to guide you through the process. No matter how you choose to approach it, remember that just as setting up your business takes planning and legal forethought, so will closing it. Here are our picks for top checklists for closing a small business.
Whether you are at the early stages of launching a small business, are facing a legal dilemma, or have decided to throw in the towel and close shop, there usually comes a time in every entrepreneur's tenure when he or she commits to hiring an attorney. If that day is today for you, we congratulate you on taking steps to seek quality legal guidance and offer these tips on how to find the perfect small business attorney.
1. Consider your small business legal needs. Why contact an attorney now? What are specific things you want the attorney to work on? What time frame do you need them by?
Here are some common issues that small businesses engage an attorney for. Some are items that you can file for yourself, and others require legal representation.
- incorporation questions, shareholder and directorate queries, ongoing legal requirements, creating a separate corporate identity to avoid personal liability.
- registering a trademark, patent, or copyright for creative, technical, or unique ideas, logos, brands, and products.
- enforcing protected intellectual property, collecting delinquent payment for goods or services delivered, defending against cases against the business.
- drafting employment contracts, independent contractor agreements, service agreements, liability waivers.
- tax considerations, closing a business, relevant federal, state, municipal codes.
Two weeks ago, the doors of a Rotorua, New Zealand gas station were shuttered. Its owners, rather than cashless, were likely already out of the country with over $2 million their bank accidentally made available to them. Though perhaps bringing a grin to the faces of many small businesses whose recent experience with banks has not involved the dolling out of millions, the case shows us one way, a bad way, to close up shop.
As reported by the New York Times, Leo Gao asked his bank, Westpac Bank, for increased overdraft protection. Instead of $62,000 in overdraft, a slip of a bank teller's finger resulted in $6.2 million being made available to Mr. Gao. Westpac's motto is "Make the most of life." Mr. Gao and his girlfriend Cara Young did just that.
They had been running an ailing gas station. The Guardian reports that after withdrawing as much of the money as they could, the pair told neighbors they were going on holiday, quietly shuttered the gas station, and took off. The manhunt is now reportedly focused on Hong Kong.
