At some point, business owners in Texas and elsewhere may wish to sell or transfer their companies to another person or entity. Those who no longer want to operate their businesses may also decide to close them down entirely. Regardless of what happens to an organization, it is important for an owner to create an exit strategy long before he or she sells or closes it.
A sole proprietor who decides to shutter his or her company may be able to do so at their discretion. However, it may still be necessary to retain records, pay employees and surrender any permits that were needed to run the business. Companies that close may have to give up their employer identification number (EIN) and pay outstanding payroll or income tax balances. If a company is sold to another person or entity, the new owner will take control of the business as soon as the sale closes.
It isn’t uncommon for businesses to be sold or transferred to buyers over a period of months or years. This allows a buyer to pay for an acquisition over time while also allowing the current owner to generate an income from his or her company. In most cases, the new owner will assume daily operation of the organization during the payment period.
Those who are seeking to exit their companies may want to discuss their options with business law attorneys. Doing so may help a business owner learn more about the process of closing, selling or transferring a company. Legal counsel may help sellers create sale or transfer agreements or otherwise review plans to step down from an organization. Finally, an attorney may be able to provide insight into the possible income or payroll tax consequences of selling or closing an organization.
