By Mark Tepper, an EO Cleveland member and president of Strategic Wealth Partners
So you’ve shaken hands and signed on the dotted line. Time to bust out the cocktails and take a yearlong trip without your cell phone or laptop, right? Almost. Be sure you have the following loose ends tied up, then go ahead and book your flight:
- Let Your Employees Know
You don’t want to wait too long to let your employees in on the sale. Tell them by following the guidelines in our previous blog post, “Don’t Leave Them Hanging: How to Prepare Your Employees for the Sale of Your Business.”
- Notify the IRS
As I explain in my book Walk Away Wealthy: The Entrepreneur’s Exit-Planning Playbook, you’ll need to notify the IRS within thirty days using Form 966. While you’re at it, close out your employer tax ID number, too.
- Meet With Your Board
One of the first things you’ll want to do after you sell or close your company is to meet with your board and pass a formal resolution to dissolve the company. Record the decision in writing in the minute meetings or in a consent form.
- File Articles of Dissolution
Articles of dissolution vary by state. Find yours on your state’s secretary of state or corporate division site. You’ll likely have to include a small fee with the paperwork.
- Pay Final Bills
Make sure all your final bills are squared away. You don’t want to end up in a situation where you’re about to head out for a round of golf with a friend and instead, find
- Cancel Insurance Policies and Close Business Bank Accounts
Do you have any insurance policies or bank accounts in yours or the company’s name? Close them or transfer to the new owner.
- Tell Your Customers
Inform your customers of the transition. You’ll want to contact key clients personally before any press releases or media news. Next, inform the rest of your clients with an upbeat letter or email.
- All done? Bon voyage and congratulations!