Liquidation is the only viable option left when you cannot continue to run your business. It is however advisable that you become acquainted with the liquidation process to avoid any problems when your business is winding up. The following are some of the important factors that constitute an important part of the liquidation procedure.
Review the assets
You should maintain separate accounts if you are handling the business on the basis of a joint partnership. After dissolving you will need to submit a separate statement of affairs to the court. Remember that you cannot dispose any of the liquid assets during the liquidation process. Moreover, you also cannot sell the assets cheaply to any relatives or friends. You should then prepare a detailed list of the assets within the office. Ask the liquidator to review the assets and determine the value of the same.
Pay the creditors
This is an important factor to consider while dissolving your company. Any sort of pending debts should be paid off as soon as possible. However, pending debts can be paid off only after dissolving the company and selling the assets.
Employees
It is important to remember your employees during the liquidation process. There is a possibility that you may owe money to these employees. For instance, you might owe wages or salaries. Employees are also entitled to compensation during the liquidation process. Seek the help of a legal counselor regarding this process.
Consider the above mentioned factors and dissolve your business amicably without any problems.