The decision to end a business is a big one and potentially even a life changing choice. Many Oklahoma entrepreneurs put a lot of effort into their companies with the hopes they can make them profitable and sustainable. So if it appears that the time has come to close down a company, it is not a decision to be made lightly.
According to Chron.com, there are many different reasons why a business owner may decide to close up a business. One of the more obvious ones is that a business is no longer profitable. Businesses in this position may no longer have enough money to weather bad economic periods, and if they are forced to take out loans or credit, it could rack up significant debt and may lead to bankruptcy and possible liquidation.
Poor management is sometimes the death knell of a business. An owner might be adept at raising money for a business but lacks the skills to manage it. Unless the owner hires a qualified manager or staff, all sorts of things can go wrong and the business may fail. Conversely, a business owner may be an excellent manager but cannot find anyone to come on board as a successor, and may decide to close down the business upon retirement.
Businesses that are run as partnerships face challenges if their owners have problems agreeing. Some partners can work harmoniously, but that is not always the case. Partners may dispute over anything from the duties of each partner to hiring and managerial practices. Even partnership agreements that properly define the roles of each partner might not be enough to prevent conflict, and sometimes dissolving the partnership is the inevitable result.
Other problems may force a business to close its doors. Companies that make defective products may face ruinous lawsuits. Businesses that do not pay state and federal taxes or do not obey government regulations could be closed down by the state. Some businesses spiral into debt and enter into bankruptcy to reorganize and try to pay off debt, but if this is not possible the business may be liquidated.
If you have made a choice to dissolve your business, you may need legal help in doing so, as there will be many important issues to take care to successfully close your operation. Keep in mind that this article is written to provide general information and is not a substitute for advice given by a professional attorney.