Whether you sold your business or just want to close it down there are some required steps to consider before you go off and sit on the porch, checking the box called DONE. Whether you are a corporation, partnership or sole proprietor, there are items that need to be done to wrap up the organization and consider both from a business perspective and a personal perspective.
First, there are business considerations associated with closing down and they relate to the government, debt resolution, asset liquidation, and employees. My first recommendation is to set an appointment with your CPA and discuss your specific situation. Our goal is… to maximize your take home pay, so understanding your taxes is very important. If you sell any assets, write off receivables or debt, short sale any property or pay for any professional fees, they all have tax ramifications. Talk to your professional and see the best way to minimize your taxes.
On the operations side, a quick glimpse of the items you might have to consider is filing your final corporate tax return, settle up your sales tax with the Board of Equalization, and file your last EDD or employment report. You might have leases to cancel and settle for the office, storage, vehicles, copy, and mail machines. There might be some money owed back to you for deposits like a lease deposit, workers comp deposit, and general liability deposit. You will have to notify all of the above plus close the company 401k, medical plan, and bank accounts. Each business is different so just be aware that there are numerous items that need to be settled before you can move on.
On the personal side, there are also many options to consider before/after closing down. There is estate planning, life coaching, and personal financial planning. The largest and most complicated area to consider is estate planning. This encompasses wills/trusts, retirement plans, life/disability/medical insurance as well as reviewing all the charitable options. I would strongly suggest that you meet with a professional financial planner to discuss your specific situation and needs.
Another area to consider is life coaching. Life coaching has moved into the mainstream over the last 10 years and right now there are thousands of advisors that can help. They are not counselors or therapists but coaches that have been trained to assist you into the next phase of life. Like you would expect from a coach, they help you set personal goals and objectives and then keep you on track to obtain the results you want.
Finally, and I personally believe most importantly, are your personal finances. Most people do not have a family budget or use Quicken to track their expenses. Now that you do not have an income, it is crutial that you manage your money. There are wonderful products online that allow you to track your income/expenses and there is no reason why anyone should not be able to manage their personal accounts.
In summary, please be aware that there is still another step after selling your business and it is just as important as all the rest. You need to wrap up all the loose ends and make sure there are no open items that will come back and bite you. Make sure you review everything with your professional advisors so when you walk out, you never have to look back. Congrats!!
Tags: budget, business exit planning, financing, professional help, retirement, taxes
