Closing Down Your Business the Right Way

Closing a Business

Closing a Business Not all businesses succeed; some entrepreneurs face bankruptcy, while some decide to close down due to lack of interest and/or commitment. Closing a business is tough as it requires a plan that will give creditors and consumers a clear notice of closure. In addition, lots of paperwork are involved. If you’re planning to end your business, below are some of the basic things to do and remember.

Cancel Your Business Registrations

Ending your business means cancelling all documents related to it. Weeks before closing, make sure that you have cancelled your business name and tax registration. You must contact the Australian Tax Office (ATO) to lodge final returns, cancel your Goods and Services Tax, cancel your Australian Business Number, and record all keeping obligations. This does not only prevent unwanted taxes, but also makes sure that you abide national laws. It is advisable to contact a commercial lawyer from Brisbane or any Australian city when doing so.

Settle Employee Obligations

Dealing with employees may just be the hardest part when closing a business. Maintain a good relationship by notifying them of your decision at least a month before closure. This allows them to look for other opportunities, keeping them financially safe. In addition, it is important that you pay their accrued annual or long service leave, depending on the industrial relations system you and your business belong to.

Resolve Lease Agreements

So you want to close your business on October 15 but the lease does not end until November — this situation could be a problem for entrepreneurs under a property lease. Make leaving easier by meeting the terms of your lease, including paying rent and transferring the lease, if necessary. Check your lease agreement carefully and seek professional advice if you are unsure of anything.

Handling a business involves a lot of work, which is why closing it down sooner or later is no big surprise for some. End your business with great memories and make sure to abide all laws and contracts along the way.