How to close your business & reopen under a new name
Businesses can have various long-term results. Some may not end up as fortunate as others and need to shut down, while in others, partners wish to part ways and therefore the business entity needs to be dissolved. In some other cases the business may run into legal problems and licenses may be confiscated.
These are only a couple of the several reasons why a business might choose to shut down and open under a new name.
Get the required information. The website of your state's secretary of state will give you comprehensive information to determine if you can reopen your business under a new name.
Complete an online conversion, if applicable. If there are business entity conversion forms available on the site, you can complete and submit them online. If your state does not offer business entity conversion forms and the facility to convert online, the next step is to dissolve the business. If the old business was a limited liability corporation(LLC), establish the new company as an incorporation.
- Businesses can have various long-term results.
- If your state does not offer business entity conversion forms and the facility to convert online, the next step is to dissolve the business.
Dissolve the old business. The application form will include the name of your old business and the details and name of your new business. Upon submitting this form, your company will automatically dissolve, and all details will be transferred to the new company.
Contact your current and previous creditors to inform them of your new business name or corporate entity information.
Inform and obtain clearance from IRS. This is true for businesses registered under any type, including partnerships or single entities. The IRS will track your information through the company's tax identification number. Once it has completed its review it will grant you the status of changing your name and business.
- Dissolve the old business.
- Upon submitting this form, your company will automatically dissolve, and all details will be transferred to the new company.
File articles of dissolution. Articles of dissolution inform the secretary of state in your state that you are no longer operating under your old company name. It also lists the reason for dissolving the company, name of the company, the owners' names, the address and the date of dissolution.
Erin Webb began her writing career in 2002. She writes for various website such as eHow on subjects ranging from health and fitness to parenting and relationships. She obtained her associate degree in journalism from San Jacinto College.