If you're planning to liquidate your business soon, here is everything you need to know.
What is a Liquidation of Business?
Liquidation of a company is the process of selling all of the company's assets and distributing the proceeds to the company's owners.
Liquidation is all about helping a brand close down while understanding the assets available before and after the sale, what liabilities can be covered, and how much of the company will need to be sold off in order for it to be declared liquidated or bankrupt (in worse-case scenarios).
A few notes about business liquidation in Canada
Canadian tax law dictates that any company that wants to liquidate and dissolve must file a tax return and pay all taxes before dissolution. Generally, a company has to file a tax return if it is not incorporated and it has $500,000 or more in income in the year.
What Steps Do I Take to Successfully Liquidate My Business?
In order to successfully liquidate a business, a company owner should:
- Find a company to buy your company.
- Use a lawyer to help with the sale and cover all legalities concerning the sale.
- Schedule their final meeting with employees to brief them about the transition and possible compensations or severances.
- Meet with the bank to discuss the smooth sale of the property to the new owners.
- Talk with the landlord about the new ownership of the property or lot, close accounts, and introduce the new leasers.
You Can Have a Professional Auctioneer Help You With All Of These!
Infinity Asset Solutions continues to provide only the best auctioning services that help you effectively transition to your new ventures. Contact us today to learn more about everything that we can do for you.