Businesses don't last forever. The process of closing your business should be managed carefully, whether it involves selling, dissolving, or bankruptcy.
No matter what your exit strategy, there are a numbers of steps you have to complete to legally end your involvement in the business. Almost everything you did to open your business needs to be re-examined to make sure you've ended it properly. Your responsibilities include:
- Legal and financial obligations of closing a business: Canada Business Network
- Closing GST/HST, corporate income tax, and payroll accounts: Canada Revenue Agency
- Dissolving a legal entity: Service Alberta
- Ending your insurance
- Completing your final year of taxes
- Closing your WCB account
- Closing any business licensing accounts
- Closing your bank accounts
- And more
Check the business startup checklist and make sure that you've closed all the accounts and ended all the agreements you opened when you started your business.
Bankruptcy should be your last resort. If you cannot pay off your debts any other way, bankruptcy may be your only option. Learn how to manage this complex process.
Selling your business
Don't wait until the last minute to sell your business – plan ahead to make sure the transition goes smoothly.
You've put a lot of work into your business. Make sure it maintains the value you've built when you transition to new management or ownership by creating a succession plan.