Disclosure of your business on the horizon? Mississauga, ON lawyer walks through legal steps, considerations
With the onset of the pandemic, “business closure” became everyday parlance; however, these closures were generally brought on by stay-at-home orders. They were considered a temporary or short-term answer to urgent public health concerns. As time has marched on, though, you may be considering closing your business for good. A seasoned business and real estate lawyer, Tarunjeet Gujral walks you through the legal steps of business closure in Mississauga, ON and the GTA. Gujral Law Office wants to ensure you make an informed decision about the business that supports you and your family, and the livelihoods of others (employees and their families).
How did you start the business with the end in mind?
This is always a great practice – to begin your business with the end in mind. You never know what tomorrow can bring, be it a devastating health event, or a world-changing pandemic. Having an exit strategy in mind can help you to align present-day actions to those longer-term goals; however, if that strategy applies, you probably already have succession options in place to sustain the business (though COVID-19 may be throwing a giant wrench into those plans). Be aware that even oft-cited reasons for closures, from disappointing net profits and bad cash flow to a lack of personal satisfaction, do not necessarily mean that you must shutter for good. Again, this is where a sound strategy can assist to drown out emotional or external “noise.” A shining star within your company may be able to run with your business, just as an outside buyer may be willing and able to take what you built to new heights. Or pivots large and small can make a world of difference in times of immense external turmoil and change. Additionally, it quite literally pays to explore that you are taking advantage of all financial relief measures that may be available to you.
What must I do to legally close my business?
If shuttering is the answer that you ultimately arrive at when questioning financial or personal woes, we have provided a general checklist of steps to take as part of the closure process — beyond informing clients and liquidating stock:
- Sole proprietors or partnerships must cancel their business name and registration.
- Corporations must go through the dissolution process, which includes passing a resolution at a shareholders meeting.
- Appropriate paperwork (articles of dissolution) must be provided to provincial government branches within ServiceOntario.
- Submit final tax returns to the Canada Revenue Agency.
- Pay outstanding creditors, tax debts, and close related accounts (GST and HST through the Canada Revenue Agency, and PST through the Ontario Ministry of Finance).
Resist the temptation to “do it alone.” At Gujral Law Office, we can help you to navigating the above processes. We also have the focused knowledge and experience to explore often overlooked considerations associated with dissolving a company, and its consequences for you and others who depend on your business, or who would in some way be affected by its closure. If you are considering options to shed a business that you no longer find rewarding or that may be struggling in the current environment, we encourage you to contact your experienced commercial counsel in Mississauga.Back to Home Page