What to do when Selling or Closing Your Business

There are a number of steps you need to consider doing when you are either selling or closing down a business. I caution you before reading any further that the information provided does not cover all aspects and activities but rather provides a quick overview of some of the things you will need to do.  I recommend that you seek professional advice specific to your circumstances to ensure you cover all bases.  Having said this, here are some of the main activities:

• Finalise and lodge all tax obligations (e.g. Activity Statement, Instalment Notices, FBT Returns and Income tax);
• Request any refunds that may be owing to you;
• Make sure you cancel any withholding registrations;
• Cancel your ABN (when you cancel your ABN you automatically cancel your registration for GST, luxury car tax, wine equalisation tax, fuel tax credits and any AUSKEYS linked to the ABN);
• Consider whether you need a liquidator to wind the business up and if so, find a good one.
• If you are an employer:-
  • Ensure all superannuation liabilities are finalised;
  • Ensure all eligible termination payments are made; and
  • Ensure all PAYG liabilities have been paid.
• Remember that under the tax law the business has an obligation to keep records for five (5) years after the records are prepared;
• If the business is a company then it must dispose of all assets before you can deregister the company;
• If you are selling, make sure you consider and get advice in relation to Capital Gains on the sale.

If you are contemplating selling or closing down your business talk to Balanix before you start the process to ensure that you understand all your businesses obligations and how to go about the process.