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What to consider when closing your business

Starting a business can be an exciting time in your life. There are many considerations and big decisions to make. While starting a business can be a big accomplishment in your life, it is important to remember that not all startups will be successful. 

When you started your business, you made many considerations and had to follow many legal guidelines. Whatever the reason, if you are thinking of closing your business, it is just as important to follow the appropriate steps and legal guidelines to make sure your old business doesn’t come back to haunt you.  

If you are thinking about closing your business, it is important to know what steps to take to formally end your business in Colorado. Closing an inactive business may seem like a complex ordeal but being aware of what steps to take can help ease the stress and make sure your company is officially closed. 

If you company was an LLC or corporation you will need to follow the process for business dissolution. Remember, if you have other owners or shareholders, they will need to vote on closing the business. Upon deciding to close the business, you will need to file an “Articles of Dissolution” or “Certificate of Termination.” 

You will also need to pay any outstanding bills to make sure all debts are paid before owners can receive any assets from the business. You will need to file final federal and state tax returns for the year you are closing the business. 

It is also important to remember to cancel any permits or licenses the company has. This will make sure you do not receive any bills for license or permit fees after the business is closed. 

There are other considerations to make when closing a business. Business owners should consult a business law attorney for specific advice as every company is unique and has different considerations to make. 

Source: Small Business Trends, “How to Close An Inactive Business Before It Really Begins to Cost You,” Nellie Akalp, Dec. 6, 2013


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