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There are many necessary steps to closing a business

After years of planning and the expenditure of a New Jersey resident's time and money, a new business that embodies a person's dream may open. While some new businesses thrive from the start, others struggle to grow in competitive markets. After enduring struggles and making difficult decisions about their entities' futures, some business owners may choose to close the doors of their enterprises rather than pursue options for keeping their operations afloat.

The Small Business Administration advises that business owners take care when working through the process of closing their businesses. A business closure may be part of a business's planned exit strategy or it may be a sudden necessity due to financial challenges. Regardless of why a business must wrap up its operations, there are several important steps that should occur to make sure business owners are not left with additional struggles when their entities are officially closed.

First, business owners can benefit from speaking with business professionals and lawyers to learn about laws and regulations that may impact how their business closures can occur. Additionally, different business types can be subject to different closure laws and as such business owners are encouraged to seek out their own legal counsel rather than using general information to guide their business-closing actions.

Second, business owners should carefully handle the paperwork associated with ending their operations, including but not limited to filing documents to legally dissolve their operations, canceling contracts and licenses and paying outstanding debts and taxes. In some cases, a business may not be considered closed if the proper paperwork is not successfully filed with the state government.

Finally, business owners should plan to keep many of their business records for a period of years after their businesses officially close. How long records should be kept may vary depending upon the type of business and where it was operated. Closing a business can be a unique process and business owners may need to get more information on how to cease the operations of their companies and businesses.

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