Understand your options
No matter what reason you have for exiting your business, knowing how and when will help you make a smooth transition in what can be a tricky time.
Options to exit your business
Find out where to start
Here you will find helpful starting points in taking the steps needed to exit your business. Find information about staffing requirements, financial considerations and practical steps you need to take.
No matter which path you are taking to exit, there are some things you will need to do to wrap it up.
As legislation and requirements are often changing, we aim to point you in the right direction and to the right information. It is always important to check that the information provided is right for you and your business, as every business is different and unique.
Seek advice
Getting help and advice from trusted advisors, in particular your accountant, will help you understand your financial position and plan for any financial obligations in closing or selling your business.
Figure out how much time you need
Consider how much time it will take to exit your business. It is not as simple as closing the doors. It may take more time than anticipated, depending on the complexity of your business. You may have orders you need to fill or services to provide before closing.
Make a plan
If you are closing your business, set a date for your business operations. The earlier you can do this, the earlier you can let your suppliers, employees and customers know.
Stock and assets if closing
You will need to sell or dispose of the business assets and stock
Pay outstanding bills if closing or selling
Clearing all bills, including employee entitlements, is part of exiting your business.
If you are unable to meet your financial obligations when closing down your business you can get help here:
Provide notice
You must give employees official notice in writing.
Understand if you need to pay any employment termination payments, including outstanding wages, redundancy, compensation or unused leave.
Even if you are passing your business to a successor, your business structure may be changing. Check if you have any obligations:
How you let your customers know will depend on the type, size and nature of your exit.
If you are closing, you can:
- Post a notice on your shop front
- Post a notice on your business's website
- Advise customers in person
- Advise customers through your business's social media channels
- Hold a 'closing down' sale, with the added benefit of selling off your stock
- Send out an email or letter campaign
If you have suppliers, you will need to:
- Inform them that your business is closing or selling
- Confirm your last orders
- Pay them any outstanding amounts
There are legal obligations you will need to take including:
- Cancelling business name
- Deregister your company
- Cancel any licences or permits
- Cancel insurance policies
Do it yourself or work with your accountant to:
- Lodge a final tax return
- Cancel any PAYG withholding
- Finalise employee tax and super obligations
- Cancel GST
- Cancel your ABN
You may also need to:
- Keep business records for a certain time
- Disconnect your services (telephone, power, water, internet etc.)
- Redirect your mail through Australia Post
- Close your business bank accounts, you have in your business’s name, especially if it is a company
- Cancel your web hosting and domain name if you have an online presence
- Shut down your social media channels
Bankruptcy and insolvency
Bankruptcy or insolvency might be the necessary step for you to take in exiting your business. There are legal processes that are in place if you are unable to pay your outstanding debts
Bankruptcy applies to individuals. Insolvency applies to companies
It can be a complicated process that you also might be able to avoid. If you think this may apply to you, the first step is to talk to a professional advisor.
You can find out more information through the Australian Government Website.
Look after yourself
Closing, selling or passing on your business can be a stressful time. There are support services designed to help you get through and make this transition smoother.
