Steps to Close Your Business
If your business is no longer profitable and is unlikely to become profitable in the future, you may consider closing the business.
- Review your position
Before closing, review your financial position and consider speaking with your accountant or business adviser.
- Finalise employees
Pay all outstanding wages, leave entitlements, superannuation and other employee obligations.
- Notify customers and suppliers
Advise customers, suppliers, banks and other relevant parties that the business is closing.
- Deal with debts and contracts
Pay or make arrangements for outstanding debts and review any leases, loans, guarantees and customer contracts.
- Finalise tax and government obligations
Complete outstanding BAS, tax returns, PAYG and other ATO obligations. Cancel registrations such as the ABN, GST and PAYG when appropriate.
- Close the business
Cancel the business name or deregister the company with ASIC, cancel unnecessary licences and insurance, and close business bank accounts once all transactions are completed.
- Keep your records
Business, financial, tax and employee records must be kept for the required period after the business closes.
The ATO also provides a record keeping evaluation tool for you to assess your business’ record keeping and information management.
https://www.ato.gov.au/calculators-and-tools/businesses-record-keeping-evaluation
Important: If the business cannot pay its debts as they fall due, seek professional insolvency advice before taking steps to close or deregister the company.
Author
May Aung