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What Happens If You Just Want to Close?

Considerations

Sometimes, selling isn’t right. Closing is okay—but doing it right saves headaches. But even a closure can be intentional instead of destructive.

Closing a business can be:

  • A rational financial decision

  • A quality-of-life decision

  • A health decision

Handled well, owners can:

  • Wind down gradually

  • Sell equipment and inventory strategically

  • Give employees time to transition

  • Avoid legal and tax landmines

Actionable Steps (non-comprehensive list):

  1. Work with SCORE/SBDC/business mentor- to create a plan of action. 

  2. Inventory & equipment – decide what to sell, donate, or recycle.

  3. Notify employees early – give them time to find new opportunities.

  4. Wrap up finances – pay taxes, cancel subscriptions, settle debts.

  5. Communicate with customers – a short, honest notice keeps your reputation intact.

  6. Consider phased closure – winding down slowly can maximize revenue from remaining operations.

  7. Ensure-remaining taxes are paid, records are retained, financials are coordinated with accountant, EIN is deactivated, and other closure items. 

Reality check: A sudden shutdown often costs more money and stress than a planned exit. Handled poorly, closures create stress, regret, and unnecessary losses.